From where I’m sitting, it’s pretty clear that the DFL got smoked in this year’s budget negotiations. First, the DFL didn’t get its 20-cent-a-gallon gas tax increase. Next, the DFL didn’t get its $12,000,000,000 overall tax increase. Third, the DFL had to settle for a cut in the HCAF, aka Sick Tax, rate. Included in this agreement is a drop from 2% to 1.8% on the Sick Tax rate. Further, the final budget will spend approximately $48,000,000,000 instead of the $51,000,000,000 that Gov. Walz and the DFL wanted.

Finally and perhaps most surprising of all, Gov. Walz and the DFL got talked into dropping the middle class tax rate from 7.05% to 6.8%. I’m betting that the DFL didn’t push that during negotiations. I’m betting that Sen. Gazelka pushed that tax cut.

Minnesota Gov. Tim Walz and legislative leaders announced a state budget agreement at a Capitol news conference Sunday night. “This is a budget that invests in education, health care and community prosperity in a fiscally responsible manner,” Walz said just after 6:30 p.m. Sunday, joined by Republican Senate Majority Leader Paul Gazelka and Democratic House Speaker Melissa Hortman at a Capitol news conference. “Today we proved that divided government can work for the betterment of the people we serve.”

Significantly, the deal does not include an increase in the state’s gas tax. The total budget will be a little over $48 billion. Other provisions of the deal include:

  1. a 2 percent increase each year of the biennium for the E-12 education funding formula
  2. an income tax rate cut in the second bracket
  3. continuation of the medical provider tax at 1.8 percent instead of 2 percent
  4. $500 million in bonding, with a large portion of that going to housing projects

I found this part of MPR’s article interesting:

The Senate on Saturday approved a Republican plan for preventing a state government shutdown if a stalemate persists, throwing down a challenge to House Democrats and Walz to either agree or take the blame for a shutdown when the current budget expires June 30. But Democrats had little to gain by taking a vote on the “lights on” proposal, given that Republicans would then have few incentives to keep negotiating.

The bill would fund government for up to two years at current projected levels assuming autopilot growth in the budget of about $1.9 billion. It just happens to be close to the Senate GOP’s original budget proposal, with none of the tax increases sought by Walz and House Democrats to put more into education, health care, transportation and other programs.

Democratic House Minority Leader Tom Bakk dismissed the gambit as throwing in the towel and accused Republicans of bargaining in bad faith.

Isn’t it interesting that, hours after Sen. Bakk “accused Republicans of bargaining in bad faith”, a budget deal was reached? I’d say that Sen. Bakk’s statement looks rather foolish at this point. Perhaps, Sen. Bakk felt stung by the fact that he wasn’t an integral part of these negotiations. Notice who isn’t part of this picture:

Whichever way you slice it, Gov. Walz and the DFL got smoked in his first negotiations.

3 Responses to “Gov. Walz, DFL got smoked”

  • John W. Palmer says:

    Minnesotans receive the benefits of divided government which our constitution enhances by the election of the two legislative bodies decoupled from the Governorship. If the voters are happy with this outcome they are sure to keep it going in the fall of 2020.

  • Jeffrey Williams says:

    Notice who was also missing from the negotiations – former Speaker and now House minority leader Kurt Daudt.

  • Gary Gross says:

    I noticed. I think it was intentional, too. I think Gov. Walz & the DFL thought, rightly, that Kurt Daudt would clean their clocks in negotiations.

Leave a Reply