Gov. Walz's revised budget cuts hundreds of millions with deficit looming
Weeks after budget forecasters predicted a precipitous drop in Minnesota's surplus, Gov. Tim Walz has released a revised budget that his office says cuts hundreds of millions of dollars in spending in the coming years to fend off an impending deficit.
The budget revision, which is a legally required annual move, cuts $162 million from the 2026-2027 budget and about $247 million from 2028-2029. The cuts come from several state grants and programs, with some of the larger reductions coming from charter schools, payments to counties to offset tax loss and transit funding in greater Minnesota.
New spending in the budget, according to Walz, includes money for law enforcement training and bird flu response.
The revised budget maintains pillars of
Walz's original proposal
, including cutting the statewide sales tax by .075% while expanding the sales tax base, an anti-fraud package and increased accountability for health insurers. It also keeps cuts to special education, state funding for private schools, Medicaid programs and more.
If approved by the Legislature, the budget would keep more than $2.3 billion on the bottom line for the next two-year budget.
"The revised budget curtails spending growth while maintaining key services that improve Minnesotans' lives," Minnesota Management and Budget Commissioner Erin Campbell said. "This budget is fiscally responsible and recognizes the need to take action now to address the imbalance in revenues and spending long-term."
More details about the revised budget can be found on
Minnesota Management and Budget's website
.
Earlier this month, Minnesota Management and Budget
forecast a $456 million surplus
for fiscal years 2026 and 2027, a reduction of $160 million from the previous forecast. The office cited state spending and "shifting policies at the federal level" as reasons for the shrinkage. Additionally, the office said if the state continues to outspend its revenue growth, there will be a deficit of nearly $6 billion in future years, an increase from the $5.1 billion deficit previously predicted.
The Legislature will have to agree on a budget by the last day of session, which is May 19. If they don't, lawmakers will have to go into special session. Without a budget, the state government would shut down starting July 1.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
2 hours ago
Minnesota budget deal cuts health care for adults who entered the US illegally
ST. PAUL, Minn. -- Adults living in the U.S. illegally will be excluded from a state-run health care program under an overall budget deal that the closely divided Minnesota Legislature convened to pass in a special session Monday. Repealing a 2023 state law that made those immigrants eligible for the MinnesotaCare program for the working poor was a priority for Republicans in the negotiations that produced the budget agreement. The Legislature is split 101-100, with the House tied and Democrats holding just a one-seat majority in the Senate, and the health care compromise was a bitter pill for Democrats to accept. The change is expected to affect about 17,000 residents. After an emotional near four-hour debate, the House aroved the bill 68-65. Under the agreement, the top House Democratic leader, Melissa Hortman, of Brooklyn Park, was the only member of her caucus to vote yes. The bill then went to the Senate, where it passed 37-30. Democratic Majority Leader Erin Murphy, of St. Paul, called it 'a wound on the soul of Minnesota,' but kept her promise to vote yes as part of the deal, calling it "among the most painful votes I've ever taken." Democratic Gov. Tim Walz, who insisted on maintaining eligibility for children who aren't in the country legally, has promised to sign the legislation, and all 13 other bills scheduled for action in the special session, to complete a $66 billion, two-year budget that will take effect July 1. 'This is 100% about the GOP campaign against immigrants,' said House Democratic Floor Leader Jamie Long, of Minneapolis, who voted no. 'From Trump's renewed travel ban announced this week, to his effort to expel those with protected status, to harassing students here to study, to disproportionate military and law enforcement responses that we've seen from Minneapolis to L.A., this all comes back to attacking immigrants and the name of dividing us.' But GOP Rep. Jeff Backer, of Browns Valley, the lead author of the bill, said taxpayers shouldn't have to subsidize health care for people who aren't in the country legally. Backer said California Gov. Gavin Newsom, a Democrat, has proposed freezing enrollment for immigrants without legal status in a similar state-funded program and that Illinois' Democratic governor, JB Pritzker, has proposed cutting a similar program. He said residents can still buy health insurance on the private market regardless of their immigration status. 'This is about being fiscally responsible,' Backer said. Enrollment by people who entered the country illegally in MinnesotaCare has run triple the initial projections, which Republicans said could have pushed the costs over $600 million over the next four years. Critics said the change won't save any money because those affected will forego preventive care and need much more expensive care later. 'People don't suddenly stop getting sick when they don't have insurance, but they do put off seeking care until a condition gets bad enough to require a visit to the emergency room, increasing overall health care costs for everyone,' Bernie Burnham, president of the Minnesota AFL-CIO, told reporters at a news conference organized by the critics. Walz and legislative leaders agreed on the broad framework for the budget over four weeks ago, contrasting the bipartisan cooperation that produced it with the deep divisions at the federal level in Washington. But with the tie in the House and the razor-thin Senate Democratic majority, few major policy initiatives got off the ground before the regular session ended May 19. Leaders announced Friday that the details were settled and that they had enough votes to pass everything in the budget package.
3 hours ago
New York lawmakers approve bill that would allow medically assisted suicide for the terminally ill
ALBANY, N.Y. -- Terminally ill New Yorkers would have the legal ability to end their own lives with pharmaceutical drugs under a bill passed Monday in the state Legislature. The proposal, which now moves to the governor's office, would allow a person with an incurable illness to be prescribed life-ending drugs if he or she requests the medication and gets approval from two physicians. A spokesperson for New York Gov. Kathy Hochul said she would review the legislation. The New York Senate gave final approval to the bill Monday night after hours of debate during which supporters said it would let terminally ill people die on their own terms. 'It's not about hastening death, but ending suffering,' said state Sen. Brad Hoylman-Sigal, a Democrat who sponsored the proposal. Opponents have argued the state should instead improve end-of-life medical care or have objected on religious grounds. 'We should not be in the business of state-authorized suicide,' said state Sen. George Borrello, a Republican. The state Assembly passed the measure in late April. The proposal requires that a terminally ill person who is expected to die within six month make a written request for the drugs. Two witnesses would have sign the request to ensure that the patient is not being coerced. The request would then have to be approved by the person's attending physician as well as a consulting physician. The legislation was first introduced in 2016, Hoylman-Sigal said, though it has stalled year after year in the New York statehouse. Dennis Poust, executive director of the New York State Catholic Conference, which has opposed the measure, said 'This is a dark day for New York State." Eleven other states and Washington, D.C., have laws allowing medically assisted suicide, according to Compassion & Choices, an advocacy organization that backs the policy. Corinne Carey, the group's local campaign director, said lawmakers had 'recognized how important it is to give terminally ill New Yorkers the autonomy they deserve over their own end-of-life experiences.' 'The option of medical aid in dying provides comfort, allowing those who are dying to live their time more fully and peacefully until the end,' said Carey.
Yahoo
4 hours ago
- Yahoo
Kansas Senator believes ranked choice voting is good for Kansas, despite ban
TOPEKA (KSNT) — A Kansas lawmaker is pushing back on the state's ban of ranked choice voting. The system allows voters to rank the candidates on their ballot based on preference. In March, the legislature passed Senate Bill 6, which prohibited the use of ranked choice voting in all Kansas elections. 'The Kansas Democratic Party used ranked choice voting in the 2020 presidential primary, and even though they say it's complicated, it turns out people seemed to understand how to use their ballot,' Senator Marci Francisco, D-Lawrence, told Nexstar's Kansas Capitol Bureau on Monday. Marci was one of 10 senators, mostly democrats, who voted not to ban ranked choice voting in Kansas. Those in favor of a ban on ranked choice voting say that the system makes the voting process more complicated. Additionally, it can be difficult to implement due to high costs associated with updating voting machine software. Activists protest possible Medicaid cuts outside KS Rep. Derek Schmidt's Topeka office However, those against a ban believe ranked choice voting is the best way to find the most popular candidate in any given election. They believe it also helps third party candidates who are often not represented in a one choice voting system. 13 other states have banned ranked choice voting, and all bans have taken effect within the past 4 years. For more Capitol Bureau news, click here. Keep up with the latest breaking news in northeast Kansas by downloading our mobile app and by signing up for our news email alerts. Sign up for our Storm Track Weather app by clicking here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
