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Gov. Walz announces $12 billion package meant to make Minnesota the "best state for kids"

Extended: Gov. Walz announces $12 billion child care package
Extended: Gov. Walz announces $12 billion child care package 06:57

ST. PAUL, Minn. -- Minnesota Governor Tim Walz announced Tuesday a $12 billion package that he says would make the state the "best" in the country for kids.

The package contains a series of proposals within the One Minnesota Budget meant to lower the cost of childcare for middle-class families and reduce child poverty in what Walz says is the "largest investment in public education in state history."

"As a former teacher, coach, and parent, I have made it my mission to make Minnesota the best state in the country for kids to grow up. We have a historic opportunity to take bold action to deliver for Minnesotans, and we're putting forward a budget that meets the moment," said Walz.

Under the proposal, families making under $200,000 with one child could receive up to $4,000 a year for childcare costs. Families with two children could receive up to $8,000 and families with three children could see up to $10,500.

Walz also proposed expanding availability for public pre-K seats for nearly 25,000 children. The state also hopes to address the childcare worker shortage by increasing staff compensation.

The proposal includes a child tax credit that would provide lower-income families $1,000 per child with a maximum credit of $3,000. The Governor's Office says the tax credit would result in over $1 billion in tax cuts in 2024-2025 as well as 2026-2027.

School funding would be tied to inflation starting in 2026 if the package passes. A bill recently advanced by a House committee that guarantees universal free school meals would also be standard.  

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Gov. Tim Walz CBS

Senator Jason Rarick, the Education Finance Committee Lead for Senate Republicans, said about the proposal that "tying education funding to inflation removes all accountability from the state's leaders to demand better of our education systems."

As part of school funding, the proposal looks to fund hiring more school counselors, nurses, psychologists, social workers, and chemical health counselors.

The package also details the creation of a new Department of Children, Youth, and Families that will "provide comprehensive support for families."

Republican Party of Minnesota Chairman David Hann is critical of the new department.

 "The governor's proposal to create an entirely new state agency doesn't even address the massive fraud in his Department of Education or the declining literacy rates and achievement gaps plaguing Minnesota's children under Walz's failing agenda," said Hann.

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