On January 26, Governor Walz unveiled his budget proposal for the 2021-2022 biennium. State Representative Tony Jurgens (R-Cottage Grove) said while this marks a beginning for budget discussions, he did not agree with a number of the governor’s budget priorities, including numerous tax increases.

“I have heard from local small business owners who have emptied their savings and retirement accounts, mortgaged their homes and maxed out credit cards just to keep their doors open during this pandemic,” Jurgens said. “These are people who were forced to do more with less thanks to barriers put forward through the Governor’s COVID-19 related executive orders. If businesses can tighten their belts during these unprecedented times, so can state government.”

Minnesota is currently projected to face a $1.2 billion deficit according to the November forecast, but that number will be updated in late February.

Jurgens said Governor Walz’ $1.7 billion tax increase plan includes a 15% hike to Minnesota’s business tax and a 10% income tax hike to Minnesota’s top tax bracket. If implemented, this would make Minnesota the state with the 2nd highest business tax in the country and the 3rd highest income tax rate.

As for spending reductions in his more than $52 billion budget, Governor Walz has proposed $150 million in cuts, or .3% “The governor’s budget serves as a good starting point, and now the House and Senate will work through its budget proposals and hopefully work out an agreement,” Jurgens concluded.