Walz reflects on term, looks toward future in final State of the State address

“We’re not done. Not by a long shot.”

Gov. Tim Walz used those words repeatedly during the final State of the State address of his eight-year tenure. Reflecting upon all that the state and its government have endured and accomplished since 2018, Walz spent over 40 minutes Tuesday evening speaking of what he’d like to see in the last legislation he signs before leaving office.

In a speech crafted to be both valedictory and inspiring, Walz presented a to-do list of legislative proposals, but also spoke to legislators, constitutional officers, Supreme Court justices and invited guests gathered in the House of Representatives’ chamber of deeper bonds between Minnesotans that had become more apparent over the past year.

Walz spoke of “our season of grief,” which he said began with the assassination of “the most talented legislator I have ever known,” Speaker Emerita Melissa Hortman, and her husband, as well as the shooting of Sen. John Hoffman (DFL-Champlin), who Walz acknowledged and applauded.

He said it continued with the mass shooting and loss of two children at Minneapolis’ Annunciation Church and the difficulties the state suffered during the winter’s federal immigration crackdown.

“We gather tonight in the long shadow of all of those tragic, transformative losses,” he said. “And yet, the state of our state remains strong.”

The governor reflected upon his time in office, saying that no one could foresee at the start of his administration a global pandemic and “a national reckoning with racial injustice and police abuse.”

“And if anybody knew that I would wind up as a candidate for vice president, I would have appreciated the heads-up,” he said.

“But when I look back on the story we’ve written together, I am more deeply proud of this state than ever before.”

Walz spoke of the changes in state law and budget allocations he’s seen as most impactful, dividing them between measures that benefit families of young children, help residents deal with increasing costs, improve infrastructure, and protect rights and promote public safety, concluding each section with a set of fresh proposals, finally focusing upon “fighting fraud in our state’s human services programs.”

Walz touted several elements in his proposed tax bill, including an expansion of the Dependent Care Tax Credit, a cut in the statewide sales tax, and a social media tax on “big tech companies making billions off of our data.” He also proposed forming a “Governor’s Council on the future AI economy.”

Walz also proposed:

• $33 million for permanent supportive housing;
• $34 million to help first-time homebuyers afford a down payment;
• $10 million in partially forgivable loans for businesses that lost significant revenue during Operation Metro Surge;
• rental support for over 9,000 households;
• a $907 million bonding bill; and
• supporting sustainable aviation fuel.

Among his most urgent pleas was for legislation to “keep our communities safer,” including proposals to “ban weapons of war and high-capacity magazines,” require gun storage, implement insurance requirements for firearms, “close the ghost gun loophole,” and “expand our toolbelt to every single early intervention resource to our schools.”

Lawmakers and guests applaud as Gov. Tim Walz prepares to deliver his final State of the State address to a joint session of the Legislature April 28. (Photo by Michele Jokinen)

As for fraud, the governor proposes “a major structural overhaul of the way we’ve administered these [human services] programs.”

“I want us to move away from a complex, layered administration managed by a patchwork network of counties, managed care organizations and state agencies towards a single model where a single, centralized agency can make sure they have control before the money goes out the door and gets out efficiently.”

Walz was most wistful at the speech’s conclusion.

“This winter has been particularly cold and bitter for so many of our neighbors,” he said. “But we’re ready to move beyond this season of grief. We’re never going to forget those we lost. And neither will we forget what we found to be true about ourselves and our neighbors: that we are strong, we are resilient, we are generous, we are compassionate, and we’re in this thing together.”

[MORE: Governor’s speech, as prepared]

Legislative leaders react

Following Walz’s speech, House Speaker Lisa Demuth (R-Cold Spring) said the state of the state is “somewhat disappointing.”

During Walz’s tenure, the state had an $18 billion surplus that wasn’t returned to Minnesota taxpayers, schools had mandates put on them that were unaffordable and fraud in state government that only “broke through slightly” in Walz’s address, she said.

Lawmakers can’t fix everything from the past seven years in the time left this session, but there’s still work to do, she said. House members have proven that DFLers and Republicans can come together to make things more affordable for Minnesotans, but property taxes and prices are high.

“Instead of unifying us and bringing us together … we heard grandstanding on Democrat priorities, most of which was talked about tonight, was passed with no Republican input whatsoever,” she said.

House Republican Floor Leader Harry Niska (R-Ramsey) added that it was a “disappointing speech” and “a fitting end to what has been the most divisive governor in Minnesota’s history.” It was a divisive speech about a one-sided view of Minnesota and he didn’t take accountability for “a disastrous administration,” Niska said, noting that Walz didn’t mention fraud until 38 minutes into the speech.

Calling it “a hopeful speech,” House DFL Caucus Leader Zack Stephenson (DFL-Coon Rapids) said Walz leaves “an incredible legacy” of accomplishment on education, paid family medical leave, climate resiliency and labor.

“We have a real opportunity here over the next few weeks to build on that legacy and cement it, and we are really ready to do that, and we think that there's a lot of things that can get done this year that need to get done this year,” he said.

House DFL Floor Leader Jamie Long (DFL-Mpls) said he heard “hope and pride” in Walz’s speech.

“It was a lot of pride, and the work that we've done as a community, and coming through a very tough year, and, frankly, a very tough eight years, that the governor has had to navigate, and a lot of hope in what we can do together going forward this session,” he said.

— Session Daily Editor Mike Cook and Assistant Editor Lisa Kaczke contributed to this story.