Minnesota Budget Deal: No Gas Tax, Small Income Tax Cut, Increase In Spending

Minnesota will avoid a Government shut down. The large budget deal will need a special session but Senate Republican Majority Leader Paul Gazelka, Democrat Speaker Melissa Hortman and Democrat Governor Tim Walz have agreed on the details to pass a two-year budget.

Minnesota Budget Deal

Minnesota will avoid a Government shut down. The large budget deal will need a special session but Senate Republican Majority Leader Paul Gazelka, Democrat Speaker Melissa Hortman and Democrat Governor Tim Walz have agreed on the details to pass a two year budget.

To the joy of Republicans the budget will not include the very unpopular gas tax proposed by the Democrats. The gas tax was going to cost $300 per year for an average Minnesota family.

The budget will include a small income tax cut. This is the first time Minnesota has cut income taxes in 20 years. The second tier income rate will be reduced from 7.05% percent to 6.8%.

Governor Walz and Speaker Hortman were pleased that the 2% sick tax which was set to expire will go on without a sunset. As a compromise the tax will be reduced to 1.8%.

Additionally, the legislature has agreed to significantly increase education funding. The increase will equal 2% increase to the per-student formula for each of the next two years. Total budget will increase roughly 6.5% in total spending compared to the previous budget.

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