Walz Proposes Banking Most of Surplus Over COVID-19 Fears
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.