The saga of the budget surplus may be over. As lawmakers work to put together a budget, they’ve got their eyes on the $17.5B that’s just been sitting there waiting to be spent 🤑
Here’s Five Fast Facts About Minnesota’s New Budget:
- ✂️ Chop Chop - Democrats are in total control of the legislature, so they easily agreed with Gov. Walz on budget targets. Those targets include $17.9B in new spending, with $3B of that going to tax cuts. Nice!
- 🙅 Hold Up - Walz had originally wanted direct tax rebates, but the legislature had other ideas. They want to scale back taxation of Social Security.
- 🧾 Elimination - Republicans are still calling to eliminate the income tax, but Democrats aren’t hearing that because they feel it would only benefit rich folks. However, Republicans have also called the proposals a spending spree.
- 📈 Raised? - Walz also proposed an increase in license fees and some sales taxes, putting those gains toward transportation and housing. There’s been no indication of which way that will go.
- 🌧️ Make It Rain - Other spending targets include $2.2B for K-12 and Pre-K education, $1.2B for children and families, a $100M broadband expansion and $40M for disaster relief in anticipation of spring flooding.
🔥Bottom line: This is how democracy works. The pendulum for control swings back and forth on a regular basis. This time it’s the Democrats running the show. The important thing is that there’s a possible use for that massive surplus and there may be a way forward in eliminating it. You may not agree with how it’s being spent, but at least it’s going somewhere.
How do you feel it should be spent?
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