Torkelson appointed to bigger budget role
Says legislature feels ‘weird’ without Democrats

Rep. Paul Torkelson
ST. PAUL — In his eighth term, District 15B Rep. Paul Torkelson (R-Hanska) continues to climb the legislative leadership ladder.
Recently appointed Assistant Republican Leader in the Minnesota House, he will also serve as chair of the Minnesota House Ways and Means Committee and serve on the Rules Committee.
Representing all of Brown and Redwood counties and part of Blue Earth County, Torkelson will play a key role in the ways and means committee that holds public hearings on legislative bills to put each bill into it’s best form.
“It’s a major committee that finalizes the budget. I’ve done pieces of it before. All committee budgets go through the ways and means committee,” said Torkelson.
The committee can take testimony from bill sponsors, the general public and experts in the areas the bill affects.
Committee courses of action include amending bills, combining two or more of them under one file number, recommending bill passage as introduced or amended, sending it to another committee for consideration, voting not to approve it or tabling it, which delays action.
Torkelson said the latest state budget forecast had positive short-term news but that Minnesota’s long-term economic projection was troubling.
“We have a spending problem. When you tax and spend recklessly as the legislature did last last session, you end up with economic forecasts that trend in the wrong direction,” said Torkelson.
He said the fiscal year 2028-29 budget outlook has a $5.1 billion deficit due in part to projected income and sales tax revenues and higher spending for long-term care and special education.
“We need to start spending responsibly, ensure those who are utilizing government programs truly need the funding they’re receiving, and eliminate the waste, fraud and abuse that continues to be found in our state government,” said Torkelson.
He called a proposal to cap long-term care and elderly care cost hikes “another slap in the face of our elderly.” He said extending sales taxes on financial services would hit people who go to companies like H & R Block to do their taxes. He called Walz’ plan “a disguised tax increase with a sales tax cut that doesn’t raise very much money.”
“Raising taxes and pushing more costs on school districts already struggling with mandates doesn’t fit well with how I think we should do this. We’re going to take a close look at the paid family leave program recently approved that is very expensive for businesses and employees,” said Torkelson.
The governor’s proposed $65.9 billion budget that includes a modest sales tax cut, from 6.875% to 6.8%, which would create a 7.5 cent savings on a $100 purchase. About $95 million in lost revenue would be offset by extending the sales tax to some services that aren’t currently taxed, and closing loopholes.
Services like health clubs, lawn maintenance, dry cleaning, alarm services, towing and parking are subject to sales tax but financial services more common among the wealthy are not, said Walz.
Adding a state sales tax on financial services including stock brokers, banking and accounting was estimated to increase state tax collections about $200 million a year, meaning the proposal would hike state tax collection by $108 million a year.
Walz also proposed capping cost hikes on special education and long-term care for the disabled and elderly. Annual inflation rates would be capped at 2% instead of growing at health care inflation rates for a program with disability waivers allowing people who might otherwise need nursing home care to get home or community services.
Special education transportation state reimbursement to school districts would be reduced from 100% to 95%, which would cause health care provider negotiations and school district efficiency changes, according to Walz.
Republican legislative leaders said the proposed spending caps don’t address expanding free benefits to illegals or address issues with disability and special education services needed for real budget reform to protect the most needy and taxpayer investments.
Walz said the reductions will ease the fiscal year 2028-29 budget deficit and reduce work to be done by the 2027 Legislature.
Torkelson said the legislative session that began Jan. 14 felt “weird” without Democrats.
“I certainly hope the Democrats decide to come back. We need 68 votes to pass a bill. We won’t pass bills until they return.” he said.
House Republicans hold a temporary 67-66 majority until a Jan. 28 special election to fill a vacant seat is held. Democrats refuse to attend the session, contending a quorum requires 68 members present and that the House can’t do any business without a quorum.
House Republicans said they need only 67 members present due to an empty seat.
The state Supreme Court will hear oral arguments Jan. 23 on whether the GOP’s election of their top leader as speaker and appointed committee chairs and other officers are legal.
Torkelson invited the public to visit him at the Capitol.
“I’m in the Centennial Building now. People should contact me first to find out where to find me and when to visit,” he said.