Walz Proposes Banking Most of Surplus Over COVID-19 Fears

Walz

(Glen Stubbe/Star Tribune via AP)

ST. PAUL, Minn. (AP) – Gov. Tim Walz has proposed banking $1.2 billion of Minnesota’s projected $1.5 billion budget surplus because of the uncertainties over how the new coronavirus will affect the economy.

The Democratic governor’s supplemental budget would add only $256 million in new spending on programs to the budget the Legislature approved last year.

It includes his earlier proposal to pay back $491 million into the state’s rainy day fund to maintain it at $2.4 billion.

Walz says his proposal ensures that Minnesota will be in as strong a fiscal position as any state while providing enough flexibility to respond to the pandemic.

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