Governor Walz Unveils Budget Proposal
St. Paul, MN — Minnesota Governor Tim Walz released his plans for how the state can recover from COVID-19 through his budget proposal for the next biennium. The Governor says his budget proposal would support working families, ensure students catch up on learning, and helps small businesses stay afloat while driving economic recovery.
Under his plan, Walz is pushing for an investment of $745 million in education along with an increase to the general funding formula. He would also invest $50 million in a new small business COVID Support forgivable loan to help businesses impacted by the pandemic. Another highlight of his budget proposal is an expansion of the Working Family Tax Credit, 12 week paid leave for individuals with serious medical conditions or needing to care for a family member or newborn, and a one-time payment of up to $750 to support Minnesotans in poverty.
To pay for the new investments, Walz is proposing tax increases for the wealthiest of Minnesotans and big corporations and imposing a four percent tax on capital gains over $1,000,000 for individuals, trusts, and estates.
House Majority Leader Ryan Winkler says the Governor’s proposal will help support Minnesotans in getting the relief they need.
Representative Winkler also adds that this proposal is good starting point for legislators to begin the negotiating process.
The February budget forecast will set the tone for the House and Senate for their budget proposals, which will be unveiled later this spring.