ST. PAUL – State Rep. Dean Urdahl, R-Acton Township, issued the following statement in response to Minnesota Management & Budget on Friday issuing a new state economic forecast which projects a $1.6 billion surplus for the 2022-23 budget cycle, a sharp turnaround from the $1.3 billion shortfall projected in December for the same period.
“The improved bottom line is encouraging and should be helpful in crafting a new two-year state budget this session since there is no shortfall to resolve,” Urdahl said. “This news also should tamp down talks of raising taxes. The governor proposes a $1.7 billion tax increase, a move that would both be unnecessary and threaten to stifle our economic regrowth. It would be a great injustice to raise taxes on the very people who have been put out of work or saw reduced income due to restrictions the state placed upon them, especially during a time of excess state revenue. Instead, we should be thanking Minnesota workers for determination they’ve shown over recent months by working to reopen our state so businesses and families can work to recover lost income.”
MMB said the turnaround is due, in large part, to an improved U.S. economic outlook that is bolstered by large federal actions that have emerged since November and were not incorporated in earlier projections. The projected surplus also is related to a higher revenue forecast, lower state spending, and an increased surplus for the current fiscal year.