Gov. Walz Unveils $66 Billion Budget Plan

Minnesota Governor Tim Walz has proposed a $66 billion two-year budget plan that seeks to address a potential future deficit while implementing the state's first sales tax cut. The proposal includes a modest 0.075% reduction in the sales tax rate but expands it to include professional services, such as legal and financial advice, traditionally exempt. Walz aims to curb spending on rapidly growing programs, like disability and special education transportation services, projecting savings of about $1.3 billion over the next four years. The plan also includes a health maintenance organization surcharge increase and sets caps on automatic spending increases for Medicaid services. Republicans criticized the proposal, arguing it effectively raises taxes despite the sales tax cut. The budget must be passed by July 1 amidst ongoing legislative power struggles in the state House.