One of Minnesota’s most populous counties is sounding the alarm regarding the impact Gov. Tim Walz’s proposed $66 billion budget would have on its residents’ property taxes.
On Wednesday, Carver County issued a statement in response to Walz’s budget proposal that the governor’s department heads are presenting in various committees in the House and Senate this month.
“Carver County could face a double-digit property tax hike in 2026, driven by a potential 8 percent levy increase tied to Governor Tim Walz’s proposed state budget,” the county said.
“The governor’s projected increase would impose additional costs for essential services—such as Medicaid and waiver programs—on local counties, without granting any authority to influence program criteria, eligibility, or cost structures,” the statement continued. “In addition to the governor’s proposal, rising baseline expenses including wages, benefits, and inflation, could translate to a property tax increase upwards of 20 percent.”
Walz rolled out his budget proposal in January amid a projected $5.1 billion deficit in the coming years. Since then, an adjusted budget forecast has increased the projected deficit to $6 billion.
Walz’s revised proposal has kept many of the initial measures in place, including an expansion of the state sales tax base to a number of services (e.g. banking, legal, and accounting)—which would generate hundreds of millions of dollars in new revenue over the next four years.
The two-term DFL governor’s updated proposal cuts about $162 million in the next biennium (2026-27) and $250 million in the following biennium (2028-29) from his original proposal amid the growing projected deficit. His proposal includes about $1.3 billion in cuts to the state’s health and human services budget over the next four years.
Also included among the cuts is the proposed elimination of longstanding funding of nonpublic pupil aid that helps pay for bus transportation, textbooks and counseling services at private schools.
While many components of Walz’s budget proposal won’t receive support from Republicans in the House (where the GOP and DFL are tied at 67 members a piece), the Senate DFL holds a one-seat majority. That means both sides of the aisle will have to work together to produce a budget for Walz to sign before July 1.
Officials with Carver County said they are paying close attention to the impact Walz’s budget would have on the health and human services support they provide to some county residents.
“We understand the importance of funding human services and want to ensure our residents have access to the programs they need,” said Carver County Board Chair Tom Workman. “However, shifting the responsibility for these costs to the local level, without the ability to influence them, places an undue burden on local taxpayers and that is unacceptable.”
Other counties have expressed their frustration with the governor’s proposed changes that they say would shift a tax burden from the state to local governments for services the county is mandated to provide.
Earlier in the session, Republican legislators called on Walz to consider other areas to cut in the budget, which grew by more than 38 percent over the last two years under the DFL trifecta.
“Shifting costs to counties will directly impact property taxes and will affect the most vulnerable populations, who are already struggling to pay for basic needs such as housing, groceries, and health care,” said Otter Tail County Commissioner Kurt Mortenson during a visit to the Capitol in February.
Hank Long
Hank Long is a journalism and communications professional whose writing career includes coverage of the Minnesota legislature, city and county governments and the commercial real estate industry. Hank received his undergraduate degree at the University of Minnesota, where he studied journalism, and his law degree at the University of St. Thomas. The Minnesota native lives in the Twin Cities with his wife and four children. His dream is to be around when the Vikings win the Super Bowl.
