Walz touts opportunities from massive $17.6B budget surplus
ST. PAUL, Minn. (AP) — Minnesota lawmakers learned Tuesday they will head into the 2023 legislative session with a massive $17.6 billion projected budget surplus, and Gov. Tim Walz said he would like to return some of that money to taxpayers with rebate checks.
“The golden opportunity that we have to make Minnesota an even better and fairer and more inclusive and more prosperous state is there,” Walz said after the state budget agency released the new forecast. "And the opportunity to work together in the legislative bodies to make that happen is there.”
Walz gave reporters few specifics on how he will propose to use the surplus in the budget that he plans to unveil Jan. 24 for the two fiscal years starting July 1. He acknowledged his idea earlier this year for income tax rebates of $1,000 for individuals and $2,000 for joint filers got a lukewarm reception from even his fellow Democrats. But he said it could be a “starting point” for negotiations anyway.
The governor also indicated he might support an easing of the state's partial income tax on Social Security benefits but said eliminating it for the wealthiest Minnesotans is off the table.
Leaders of the new Democratic majority in both houses of the Legislature were noncommittal on rebates but were short on details about how they would like to use the surplus. Republicans, whose influence will be limited now that they have lost control of the Senate, called for tax cuts.
Other priorities for his next budget, Walz said, will include more resources for education; expanding affordable child care; helping families cope with high food and gas prices; and leveraging federal money to modernizing Minnesota's infrastructure, including roads, bridges, transit and electric vehicle charging stations.
“Now is the time to lower...