The state’s projected budget surplus has dropped by one-third to just over one billion dollars, according to the latest economic forecast just released. The projected surplus shrinking from 1.5 billion dollars last November indicates slowing economic growth as analysts predicted. Senate Democratic Minority Leader Tom Bakk says the question now is, what is the impact on Governor Tim Walz’s budget proposal? “How much harder does his budget get to assemble, and to what extent do you absolutely have to have a tax [increase] bill in order to spend some new money on things like K-12 and health care and higher ed,” Bakk says.
Republicans argue the spending and tax increases that Governor Walz has proposed are not prudent, given the slowing economy.