Highlights of End of Session Budget Agreements

Gaselka_on_Budget_Deal.jpgSunday evening, Gov. Walz and the leaders of the MN House and Senate outlined the results of their closed-door negotiations on the 2020-2021 budget. If the details of the deal are passed by the legislature and ultimately signed by the governor, the $48.4 billion deal will represent a 6.4% increase over the 2018-2019 $45.5 billion budget.


• Budget grows about $1 billion over the projected base budget of $47.4 billion. It could have grown by nearly $2 billion if inflation, increased population, and new and expanded state programs had taken full effect.

• No increase in the gas or auto sales taxes

• Health care provider tax continues, but falls from 2% to 1.8%

• Health care reinsurance program extended for two years, to keep health care premiums affordable

• The second tier of the state’s income tax will be cut from 7.05% to 6.8% by 2022.

• Public schools will get an additional $540 million, about 2% more each year on the per-pupil funding formula that covers day-to-day expenses like teachers’ salaries.

• Higher education will get $150 million more

• A blue ribbon committee will be created to find $100 million in savings by 2023 in the state’s health and human services budget

The Pioneer Press reports that “Joint committees of House and Senate lawmakers will finish whatever they can Monday and then Walz plans to call a special session to have the Legislature pass budget bills.”