Gov. Tim Walz on Monday unveiled a $226 million supplemental budget, a scaled back proposal that prioritizes policies impacting children, public safety and water quality.
The spending plan, if approved by the legislature, would be extra spending in addition to the already approved $72 million budget for this two year budget cycle, the largest in state history, that lawmakers signed off on last year.
Funding for infrastructure through a bonding bill remains the primary focus of the session since it’s a non budget writing year.
The largest single line item in his proposal makes changes to the new child tax credit passed last year that researchers estimate could cut child poverty by one third. Walz wants the legislature to first authorize advanced, periodic payment of the credit, which is a maximum of $1,750 per child.
Walz is also pitching money to support the transition to the new Department of Children, Youth and Families, which will have jurisdiction over child welfare and food assistance programs and to improve the state’s social service systems. There’s also $5 million for food banks to tackle insecurity and a one time boost to teachers’ pension funds, saving $450 for an educator making $50,000 annually, Walz said.
Walz also earmarked $16 million to shore up emergency medical services that are on the brink of collapsing in some parts of rural Minnesota. The money would be for aid for ambulance providers and to establish “innovation zones,” which a task force studying the industry’s woes discusses as a way to study new ways of delivering emergency care for communities.
That funding is much smaller than the $120 million some lawmakers want to pass to address the crisis, drawing some criticism.
The governor vowed a smaller supplemental budget following the budget forecast in which state economists and financial experts projected revenues would not keep pace with spending in the next biennium, which could lead to a future deficit if lawmakers aren’t careful.
Walz’s proposal, revealed Monday, would ensure $2 billion on the bottom line for fiscal years 2026 and 2027. The legislature is considering its own additional spending priorities this session.