ST. PAUL (AP) -- Gov. Tim Walz is rolling out a $49 billion budget with significant increases in spending on education and health and human services.

Walz's first budget includes $733 million in new spending on pre-K through grade 12 education, plus another $158 million for higher education.

And it would devote an additional $284 million for new health and human services spending, including subsidies to help reduce premiums on the state health insurance exchange by 20 percent.

Walz, a Democrat, is also proposing to raise the gas tax by 20 cents a gallon to help pay for transportation projects.

Minnesota has a $1.5 billion surplus, but recent monthly revenue numbers suggest that number could shrink.