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,

Minnesota Gov. Tim Walz is set to roll out his proposed two-year budget plan on Thursday as he and legislators grapple with a potential multibillion-dollar deficit on the horizon. The two-term Democratic governor has said everything — including spending cuts — is on the table for the budget debate this year.

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.