The Cato Institute awarded Governor Walz a ‘D’ on his tax and spending record

On October 5, the Cato Institute released its 2020 Fiscal Policy Report Card on America’s Governors. This is a report that grades U.S. state Governors on fiscal state policy. The grades range from A to F, with those “who have cut taxes and spending the most” receiving an A and vice-versa.

Governor Tim Walz got a ‘D’ on this year’s report.

Walz’s ‘D’ grade

Only four governors got an A on the report, for either fending off spending increases, cutting taxes, vetoing plans to raise taxes, or cutting the rate of spending growth. These were

Chris Sununu of New Hampshire, Kim Reynolds of Iowa, Pete Ricketts of Nebraska, and Mark Gordon of Wyoming”.

Governor Walz was among 13 other governors who had a D grade. This is for pushing for spending and tax hikes.

As Cato explains,

Walz entered office when Minnesota was projected to have large budget surpluses going forward. Rather than save the excess or give it back to taxpayers, Walz planned to spend it and then increase taxes to fund even more spending. Walz’s budget “would add $2 billion more in new spending and taxes would increase by $1.3 billion to pay for it, with the rest of the money coming from an existing surplus.” But Walz had to compromise with the legislature and the final tax increase passed last year was about $330 million annually, mainly consisting of base broadening related to the federal TCJA.

Walz also pushed for higher gas taxes and vehicle fees to raise about $1 billion annually for transportation.146 Fortunately for Minnesota taxpayers, the final budget abandoned those increases.

Minnesota, like many states, is facing a tough fiscal outlook. Walz and lawmakers, therefore, need to practice restraint. Unfortunately, Walz’s track record does not inspire a lot of confidence that he will steer Minnesota in the right direction.