Virtual File - Item

Text: From: Governor Walz Press Office
Sent: Tuesday, March 21, 2023 2:37 PM
To: Governor Walz Press Office
Subject: RELEASE: Governor Walz, Legislative Leaders Agree to Budget Targets, Marking Major Step Toward
Finalizing the Biennial Budget

Attachments: Joint Target Agreement_Signed 3.21.23.pdf

FOR IMMEDIATE RELEASE:
March 21, 2023
Contact: Claire Lancaster
claire.lancaster@state.mn.us
651-219-2975

Governor Walz, Legislative Leaders Agree to Budget Targets, Marking Major Step
Toward Finalizing the Biennial Budget

New budget framework will make historic investments in kids and families, provide largest tax
cut in state history

Agreement includes commitment to send a portion of the surplus back to Minnesotans in the
form of checks

[ST. PAUL, MN] - Governor Tim Walz, Senate Majority Leader Kari Dziedzic, and House Speaker Melissa
Hortman today announced that they have reached an agreement on key budget decisions, taking a major step
toward finalizing the two-year state budget. The agreed-upon budget framework includes historic investments
for kids and families, the largest tax cut in state history, and funding to improve health and safety.

"Whether it's ensuring every kid can eat breakfast and lunch at school or passing $100 million in tax cuts,
this has been the most productive legislative session in a generation - and we're not letting our foot off the
gas," said Governor Walz. "This agreement moves us closer to ending child poverty and putting the state
surplus directly back into Minnesotans' pockets. I'm grateful for the long hours and close collaboration of
our legislative partners to put together this budget."

"The Senate DFL majority, working together with the Governor and the House, has enacted
transformational legislation this year that will help families across Minnesota," said Senate Majority Leader
Kari Dziedzic. "With these budget targets, we can create a state budget that helps family budgets and
focuses on lowering costs and investing in the needs of people and communities across the state."

"Our budget agreement focuses on the issues Minnesotans across the state value and care about: investing
in public education, making health care more affordable, and building an economy that works better for
everyone. We also heard from voters that they were concerned about climate change, and this budget
includes significant investment in climate action. Finally, we share the Governor's commitment to make this
the best state in the country to raise a child, and we're working to dramatically reduce child poverty," said
Speaker Melissa Hortman. "We are making historic investments in Minnesota's future and prioritizing the
people and places that need the most help because everyone deserves the opportunity to succeed. I'm
grateful to Governor Walz and Senate Majority Leader Dziedzic for their partnership as we continue crafting
a budget that meets the needs of Minnesotans."

The agreement, typically not reached until near the end of the legislative session, includes the following
targets. Committee chairs will finalize the components of the budget areas.

$2.2 billion for K-12 education and pre-kindergarten
$1.178 billion for children and families
$100 million for broadband expansion
$1 billion for housing
$255 million for energy and climate
$650 million for public safety
$2.3 billion for infrastructure projects
$3 billion in tax cuts, the largest in state history

The full agreement is attached here.

Global Budget Agreement Committee Targets
General Fund Net Targets
3/21/2023

$ in millions
House/Sen/Gov Agreement


1 Net Targets FY 2023-25
2 Areas Within Omnibus Bills
3 K-12 Education 2,214.1
4 Children and Families 1,175.0
5 Early Education 300.0
6 HHS - Children and Families 875.0
7 Health and Human Services 755.0
8 HCAF Financing (621.6)
9 Human Services 1,300.0
10 Higher Ed 650.0
11 Agriculture 48.0
12 Broadband 100.0
13 Housing 1,000.0
14 Environment and Natural Resources 670.0
15 Energy and Climate 255.0
16 Commerce 10.0
17 Workforce Development 240.0
18 Economic Development 250.0
19 Federal Economic Dev Match 500.0
20 Labor 8.0
21 State Government 400.0
22 Veterans and Military Affairs 128.4
23 Elections 10.0
24 Transportation 1,075.0
25 Judiciary 230.0
26 Public Safety 650.0
27 Taxes, Aids and Credits (Net) 3,000.0
28 Debt Service and Capital Projects 2,298.5
29
30 Other Items
31 Paid Family and Medical Leave 668.3
32 Stadium (inc. reserve impact) (340.8)
33 Pensions 600.0
34 Earned Safe and Sick Time 4.8
35 Lead Lines 240.0
36 Disaster Relief 40.0
37 Claims Bill 1.5
38 Other Items 310.0
39 Total GF Impact 17,869.2