Governor Walz Supplemental Budget Recommendations 2022

Governor's Budget Recommendations

Budget Highlights

$5.6 Billion

Supporting Children and Families

• $75 million for Early Learning Scholarships expansion.
• $135 million to increase general education formula 2% in FY 2023.
• $155 million for full-day, prekindergarten for at underserved 4-year old children.
• $126 million for home visiting.

$1.1 Billion

Expanding Economic Opportunity

• $2.7 billion to repay the state's unemployment insurance debt.
• $700 million in one-time rebates to 2.7 million households with incomes up to $164,000 single filers and $273,470 for joint filers.
• "Hero Pay" for frontline workers and an expansion of support programs aimed at workforce development for high-need careers.

$1.6 Billion

Protecting Minnesotans Health & Safety

• $100 million in public safety aid for local governments.
• Legalizing recreational adult-use cannabis.
• $100 million one-time increase in funding for "community stabilization" Naturally Occurring Affordable Housing.
• $10 million for Prevention, Intervention, Enforcement Community Policing Grants.

$282 Million

Local Jobs and Projects Plan

• 2022 Capital Budget Debt Service and Cash Capital Costs.

Biannual Operating Budget by the Numbers

$7.7 billion: Forecasted state budget surplus

$52 billion: Size of the state's two-year budget

2022 Capital Bonding Recommendations

$2.7 Billion Local Jobs & Projects Plan

• $2 billion in general obligation bonds.
• $730 million in other funding sources, including appropriation bonds, general fund cash, trunk highway bonds, trunk highway cash, and user-financed bonds.
• Asset Preservation - 38%
  Over $1 billion to maintain and renew taxpayer-owned property including $260 million to repair and replace buildings in the University of Minnesota and Minnesota State campuses.
• Infrastructure - 21%
  Over $560 million for infrastructure projects – bridges, roads, water treatment, etc.
• Housing and Homelessness - 16%
  $450 million for affordable housing projects including repairing existing shelters and investing in housing for veterans.
• Community and Equity - 14%
  $400 million for equity in bonding to fund organizations that service BIPOC communities.
• Environmental Stewardship - 10%
  Over $262 million to mitigate the impacts of climate change and preserve Minnesota's natural resources, including electric vehicle charging infrastructure and stormwater construction grants.

FAST FACTS

Total 2022 bonding requests: $5.5 billion

$4 billion in agency requests

$1.5 billion in state agency requests

2020 bonding bill - $1.9 billion

2020 Governor's request - $2.6 billion

2018 bonding bill - $1.43 billion

2018 Governor's request - $1.5 billion

2017 bonding bill - $988 million

2017 Governor's request - $1.5 billion

Bonding bills require a supermajority to pass: 60% = 40 Senators and 80 Representatives

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