Remember the $1.5 billion dollar surplus predicted in November? Well, it just got a bit smaller. Evidently, the state now has only a $1 billion surplus for this biennium.
This budget reduction is not a huge surprise but the
new information will likely require Governor Walz to slightly scale back on some of his budget requests. W
e will soon see if or how the Walz administration adjusts their budget requests accordingly.
GOP leaders said the new budget shows that this is not the time to raise taxes, as it will cause more top earners to flee the state; something they say is causing a projected deficit for the next biennium.