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By Clay Masters and Dana Ferguson, Minnesota Public Radio News

Democratic Gov. Tim Walz held Minnesota up as the model that “all of America would like to have” as he appraised the opportunities, challenges and unknowns the state will face in coming months.

In a Wednesday night State of the State address to a joint session of the Legislature, Walz offered a roadmap to crafting a budget that would “bring everyone to the table” and that involves cuts to spending many in his party might flinch at and Republicans would want to take further.

But he also used the speech to ramp up his criticism of President Donald Trump, attacking the new administration as destructive to “the values that once made America the shining light of the world.”

“We need to prove to the people of Minnesota — to the American people — that there’s a better way to govern. Because the truth is, this current administration in Washington is not forever,” Walz said in remarks prepared for delivery. “These small, petty men will disappear into the dustbin of history. And when they do, we’ll have both an opportunity and an obligation to rebuild our government so it actually works for working people.”

It has been a little more than six months since Walz came up short in his vice presidential bid. And this speech comes as a Walz reelection decision creeps closer.

Walz is straddling the two worlds: He wants to remain a major figure among Democrats that being on the presidential ticket gave him, but he also needs to find a way to navigate a session more complex than when his party controlled the Capitol and money was flush. This year, there is barely any fiscal wiggle room and possible federal spending cuts could compound the difficulty for Walz and lawmakers.

Walz walked that tightrope in his speech, proclaiming the state’s condition to be “as strong as it’s ever been” while in the next breath noting “a great moment of uncertainty for our nation.”

He touted past moves to boost spending on classrooms and school meals, to approve child tax credits for low-to-middle income families and to enact a robust paid family leave program only months away from launching.

“The truth is, all of America would like to have what we have,” he said.

At recent events and in the Capitol speech, Walz has nodded to rockier times that could put some of that in peril. He has focused specifically on how reductions to federal Medicaid funding would put a squeeze on the state’s finances with as much as $1.6 billion per year at risk.

He said care for a million Minnesotans could be impacted directly and rural hospitals could suffer collateral damage.

Walz also forecast economic trouble from trade tariffs, blasted Trump administration decisions to fire workers while freezing previously approved grants and questioned the move in Washington to extend tax cuts that he said would benefit the wealthiest the most.

As for Minnesota’s own budget situation — there is a deficit brewing on the horizon — he said the next month will be pivotal as he and lawmakers work to negotiate a joint plan.

“We’ll have time to go line by line together and hammer out a final proposal that allows us to move forward as One Minnesota,” Walz said, reaching back to his 2018 campaign theme.

He added, “I believe we can show our people — and everyone around the nation who’s watching — that we can still work together to improve lives.”

Legislative leaders are scaling back budget blueprints to keep a shortfall at bay. Walz himself has proposed curbing growth in health care spending and other fast-rising expenses to chip away at the future problem.

Heading into the speech, Republican legislative leaders were hoping Walz would stick to notes of harmony rather than deliver a politically stinging address.

“The governor has an opportunity to really pull people together in the state and unify when we are being incredibly partisan,” GOP House Speaker Lisa Demuth said this week. “That is maybe pushing people to extreme actions in other areas, and dividing both the state and potentially the country further.”

In a rebuttal to Walz’s speech, GOP Floor Leader Harry Niska said Walz and Democrats in the Legislature are too focused on Washington even as the governor expressed openness to working with Minnesota Republicans.

“While there was maybe not quite an olive branch, but maybe a few buds from an olive tree given by the governor, most of it was overshadowed by a quite, frankly angry rant about Donald Trump,” Niska said. “And I don’t think that serves the state of Minnesota, I don’t think that that’s the path we should be taking.”

The loudest applause from Republicans in the chamber came after Walz mentioned bipartisan efforts to fight fraud.

Walz has said he will decide by summer if he’ll try for a third term as governor. He hasn’t ruled out a 2028 run for president, although he has deflected questions about that as being premature. Still, he’s worked to stay in the national spotlight since his unsuccessful run for vice president. He’s a constant critic of the Trump administration, making regular appearances on cable TV.

He’s been holding town halls in Republican congressional districts in other states.

Like in Wisconsin, Ohio, Iowa Nebraska and even as far away as Texas.

“I was given a platform by running on the ticket with Kamala Harris that I think I can bring some attention,” Walz told MPR News before taking the stage at a town hall in Des Moines, Iowa, last month.

Politically, things aren’t as cushy for Walz as the last State of the State a year ago, when DFLers were charging through an ambitious agenda with the governor’s blessing. Now, Democrats narrowly control the Senate and the House is evenly divided between the two major political parties.

While the attention of Walz has been undeniably split this year, the governor will be more tied down over the next month as lawmakers race to complete a budget by the May 19 adjournment deadline.