ST. PAUL – State Representative Rod Hamilton (R-Mountain Lake) said there’s good news and bad news to be found in Minnesota’s latest budget forecast.
For the budget cycle that ends in June, Minnesota now projects a $641 million surplus. For the 2022-23 budget period that begins in July, state economists project our state to face a $1.273 billion deficit.
“A few months ago, we were bracing for a $2 billion deficit for the current cycle and a nearly $5 billion deficit in the next budget,” Hamilton said. “So while I’m pleased Minnesotans helped stabilize our economic condition in the short term, we’re not out of the woods yet.”
Hamilton said higher than expected sales tax collections and businesses investments brought more money into the state’s coffers, while spending decreases in certain areas of government contributed to the improved fiscal news.
Hamilton noted that the projected deficit for 2022-23 does not take into account any potential federal relief, which would help offset any budget deficit. He also said Minnesota has $2.4 billion in budget reserves.
“With too many business owners and workers struggling to survive, it is clear to me that raising taxes of any kind this biennium should not be considered,” Hamilton said. “We need to be looking to help people survive this pandemic, not financially punish them.”