Minnesota Gov. Tim Walz wants to boost spending in his two-year budget plan by more than $1 billion, sending more money to communities for spending on public safety, replacing lead pipelines and addressing the opioid crisis.
Local governments would get $550 million under his revised budget for hiring police officers, buying more equipment or working with community groups on intervention strategies to tackle rising crime.
"Minnesotans' expectations around public safety are high and need to remain high," Walz said Thursday as he rolled out his revised budget proposal. "With upticks in crime, especially crimes on person, there's a need to reinvest."
That's up from $300 million in Walz's initial $65 billion budget released in January, which proposed increased spending on education and infrastructure as well as cutting taxes for Minnesotans in the form of credits and direct rebate checks.
Walz is required to update his budget plan after the February economic forecast. He focused new funding in his revised budget on local governments, including a $10 million increase in local government aid — now a total of $40 million — which municipalities can use to pay for services and offset increases in property taxes.
"I'm a big believer that those decisions close to the people make more sense," Walz said. "I'm really concerned that you create inequities in the state if you predicate things like public safety, like education, solely on property taxes. You put those communities that don't have that [tax base] at risk."
He's also pitching $240 million — up from $6 million — to help communities identify and replace lead service pipelines and a total of $220 million to combat the opioid crisis by spending more on treatment and recovery sites and providing clean needles and testing supplies.
"Replacing that lead infrastructure is extremely costly," said Lt. Gov. Peggy Flanagan. "We have a real opportunity here to partner with local governments and the federal government."
The new budget establishes a $2,500 state tax credit for people who buy an electric vehicle, which is similar to a larger federal tax credit. Eligible Minnesotans could get up to $10,000 between the two credits in 2024 if they purchase an electric vehicle.
The February forecast showed the the state's surplus hit $19 billion, up from $17.6 billion in November. But inflation estimates, which were included in the forecast for the first time in two decades, took a $1.5 billion bite out of the surplus.
Walz is still proposing to use some of those additional dollars to fund his added budget priorities.
The governor must negotiate with the DFL-led House and Senate, which are starting to draft their own two-year budget plans.
