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Dear Neighbors,
It was a busy week in St. Paul with committee meetings picking up and the release of Governor Walz’s 2021-2022 budget proposal.
The Governor’s budget proposal is the first step in the process of debating and approving a new two-year state budget. Minnesota’s Constitution makes clear that lawmakers must balance the budget every two years. With the only divided legislature in the nation, our work is cut out for us this year, but I am optimistic that if we work together, we can finish on time with a budget that all of Minnesota can be proud of.
Governor Walz’s budget proposal is headlined by nearly $1.7 billion in tax increases, major spending hikes, and disappointingly no meaningful spending cuts.
In fact, out of a massive $52.4 billion budget, the Governor is proposing just $150 million in budget reductions. That's not even a 0.3% reduction in spending — this is an unacceptably small amount during a year where so many Minnesota families and businesses have seen their incomes fall off a cliff.
As for taxes, Governor Walz’s budget proposes a 15% increase to Minnesota's business tax rate would vault Minnesota to the second-highest rate in the nation.
Additionally, he is proposing a 10% increase in income taxes, creating a fifth tier that would give Minnesota the third-highest income tax rate in the nation.
Raising taxes and growing government as the state continues to recover from the damage caused by his forced shutdowns is the wrong approach to balance our budget. This proposal would slow our recovery and further damage Minnesotans and businesses that have been harmed by the Governor’s one-size-fits-all closures. Instead, we should focus our efforts on making sure that the government shares in the sacrifice by reducing spending and streamlining state agencies.
Stay tuned for more updates on this as the legislative session unfolds.
Staying in Touch
I am planning to host virtual town halls twice a month, beginning next week. Please contact my legislative assistant, Josh, to learn more details about how you can join in on the conversation. He can be reached at Joshua.Solano@house.mn.
Please do not hesitate to reach out to me to share your thoughts, questions, and concerns. I can be reached by phone at 651-296-2907 or via email at rep.donald.raleigh@house.mn.
Have a great day,
Donald
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