Gov. Tim Walz outlines plans for a second ‘Minnesota miracle’ during State of the State speech

Christopher Magan, Pioneer Press
Updated ·4 min read
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In his first State of the State address of his second term, Gov. Tim Walz detailed his vision for how a new Democratic trifecta in charge of Minnesota government would leverage a historic budget surplus for a new “Minnesota Miracle.”

Speaking to a joint session of the Minnesota Legislature, Walz highlighted many of Democrats’ priorities, including billions more in spending for schools, families and the state’s most vulnerable. The more than $17 billion in new spending Democratic-Farmer-Labor Party members have planned aims to cut child poverty by roughly 25 percent and make the state the “best place to raise a family.”

“We have the resources. We have the shared vision. And for the first time in half a century, we have the political will to get this done,” Walz said at the conclusion of his roughly 30 minute speech. “So let’s not waste this opportunity. Let’s get to work building a state we’re proud to raise our kids in.”

Minnesota Republicans have pushed back on governor’s ambitious agenda. They say Democrats are too focused on spending the state’s historic $17.5 billion budget surplus and raising taxes.

GOP lawmakers have pushed for broad tax cuts and restrained government spending, but they have little leverage since they are now in the minority in both chambers of the Legislature.

“Minnesotans want tax relief,” said Rep. Lisa Demuth, R-Cold Spring, the House Minority Leader. “With a record budget surplus of $17.5 billion, returning that to Minnesotans, reducing government and costs, that is what Minnesotan residents are looking for.”

Policy priorities

In his speech, the Democratic governor also emphasized some of his policy priorities, like protecting abortion rights, implementing a new paid leave program and tightening controls on guns.

“We all know damn well, there’s no place for weapons of war in our schools, or in our churches, or in our banks, or anywhere else people are just trying to live their lives without fear,” he said.

Walz also took shots at some of his Republican counterparts who lead red states, saying they were on the wrong side of several divisive social issues. He said Minnesota won’t tolerate “hatred and bigotry.”

“They look at their most vulnerable people and they see scapegoats. We look at our most vulnerable people and we see neighbors,” Walz said. ” It’s amazing what you can accomplish when you stop complaining about corporations going “woke” and start giving a damn about the real lives of real people.”

Senate Minority Leader Mark Johnson, R-East Grand Forks, said he was surprised by the amount of national focus in Walz’s speech, including jabs at leaders of conservative states like Florida.

“Ron DeSantis is probably off his Christmas card list at this point,” Johnson joked, calling the speech a Democratic “pep rally.”

Walz’s speech had several references to former Democratic Gov. Wendell Anderson and the legislature he worked with in 1971 to approve the so-called “Minnesota Miracle.” Enacted in a special session, the package of spending and policy changes added millions of state funding to schools and local governments from higher sales and income taxes to help slow rising property taxes.

“(N)ow we have a new mandate for action — a chance to set aside old fights in favor of doing something truly historic for our children and grandchildren,” Walz said. “This is a moment we have been building towards for a long time. And we won’t let it go to waste.”

Legislature working to pass budget

Walz’s DFL colleagues praised the governor’s vision. Senate Majority Kari Dziedzic, who Walz noted was working remotely while battling cancer, said the gridlock and inaction of divided government was over.

“In the coming weeks, we will deliver a balanced budget that helps family budgets and improves the lives of people and communities across the state,” Dziedzic said in a statement. “The state of the state is strong and we are pushing to make it stronger.”

Dziedzic’s colleague, Senate President Bobby Joe Champion, R-Minneapolis, said “the governor got it right” that it was time to invest in the state’s people and its future.

House Speaker Melissa Hortman, R-Brooklyn Park, called Walz’s speech inspiring. She agreed it was time for the “Minnesota Miracle 2.0” and that would draw people to the state.

“When you come to Minnesota for the good life, it will be here,” Hortman said.

The Legislature has been working diligently to pass the next state budget, which is expected to spend more than $66 billion over two years. That’s a 28 percent increase from the current general fund spending plan.

There’s also more than $5 billion in one-time spending including rebate checks for tax payers, billions for infrastructure projects and startup money for a universal paid leave program. Democrats also want to raise new revenue with increased taxes on top earners, corporations as well as proposed increases in sales taxes.

A number of budget bills have already cleared the House and Senate, nearly a month earlier than the Legislature typically advances spending bills under divided government. Lawmakers have until May 22 to finish their work before the session adjourns.

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