Gov. Tim Walz on Thursday pitched a tighter two-year budget, complete with spending pullbacks and other measures to keep a potential deficit at bay. He also proposed a lower state sales tax rate but called for extending the tax’s reach to financial services.

House and Senate Republicans balked at Walz’s recommendations and signaled they would resist any new taxes or fees.

Gov. Tim Walz's budget proposal would make changes to sales tax collections and trim state spending in an effort to stave off a steep shortfall in future years.

Gov. Tim Walz pitched the first sales tax cut in Minnesota history and curbs to state spending on Thursday as he rolled out his latest budget proposal. Why it matters: It's the DFL governor's opening salvo to a deeply divided Legislature,

Gov. Tim Walz is pitching his first budget under the new Trump era as a counterweight to the incoming president’s threats to impose tariffs, which he says will raise costs on everyday Minnesotans. His plan would lower Minnesota’s sales tax rate for the first time in state history by 0.

Minnesota Gov. Tim Walz presented his two-year budget proposal, and in it he proposed a cut to sales tax but also proposed to raise the sales tax on certain services. FOX 9's Corin Hoggard has the latest.

Minnesota Gov. Tim Walz presented his two-year budget proposal on Thursday amid an ongoing power struggle at the Capitol.