New Walz Plan for Surplus Includes Bigger Tax Rebate Checks

NEW HOPE, Minn. (AP) — Gov. Tim Walz has released an updated plan for how to spend the state’s enormous budget surplus, including a proposal for income tax rebate checks of $1,000 per couple.

His revised supplemental budget proposal, released Thursday, follows last month’s announcement that the state’s budget surplus has grown to $9.25 billion. It formalizes an idea he floated then for tax rebate checks of $500 for single filers and $1,000 for married couples.

Senate Republicans are pushing to use most of the surplus for permanent income tax cuts, while House Democrats want to target the money toward lower-income Minnesotans and social programs.