(ABC 6 News) – Minnesota Gov. Tim Walz is sharing his plans for the 2025 state budget. This year, passing the budget will have an added layer of difficulty, due to having a divided House and Senate.

In December, the state budget forecasted a short-term surplus of $616 million through 2026-2027, $1.1 billion less than previously estimated.

Since then, Walz and fellow DFL legislators have received harsh criticism for their spending over the last few years. However, the governor’s new proposal seems to remedy some of that, suggesting billions of dollars in government spending cuts over the next few years.

If it passes, Walz’s office says $2.1 billion will be left over after the 2026-2027 fiscal year and $355 million by the end of 2029, eliminating the deficit.

“Long-term drivers in a few areas are going to have to be addressed so that we can continue to invest, whether it’s investing in outdoor like we did last year with the DNR or investing in our children’s future in education,” says Walz.

Another part of Walz’s plan involves cutting the state sales tax by 0.075%, the first of its kind in the state’s history. He also suggested expanding the sales tax base to include new investing, banking, and legal services.

Locally, some Minnesotans view the governor and his ability to manage state fund with confidence.

Deanne Reese is a social worker from Alexandria, and says she is always in support of programs that help support others in need.

“I feel like I choose to live in the state of Minnesota because I feel like we take good care of our people here,” she said.

Others, however, are more critical.

Rich Macrafic, a Rochester native, says it would be difficult to forget the shift from 2023’s $18 billion surplus to the current situation.

“When you go from an $18 billion surplus one year and spend it all, and then the next year you’re in a multi-billion dollar deficit, that’s not good management of finances and resources,” he said. “To me that money belonged to the citizens of Minnesota. I think it should have been returned or saved for a rainy day but not spent.”

Regardless, Walz will have an uphill battle with a divided government and a battle for control in the House.

Minnesota’s government has until July 1 to nail down a final budget.