ST. PAUL – Minnesota’s record-setting budget surplus continues to rise and Rep. Joe McDonald, R-Delano, said meaningful, permanent tax relief is in order.
Minnesota Management & Budget issued its February economic forecast Monday and it projects a $9.3 billion biennial surplus. That figure is up $1.5 billion from the already historic $7.7 billion surplus projected in November. State officials indicate “A higher income, consumer spending, and corporate profit forecast results in an improved revenue projection while spending is slightly lower in E-12 education and Health and Human Services.”
McDonald said the state already is fully funded for the biennium, meaning robust tax relief should be in store with the state’s whopping excess revenue.
“Tax relief for Minnesotans should remain the top priority this session because people are hurting with the rising prices of the Biden-Walz economy,” McDonald said. “Families and businesses already have been dealt so many tough hands over the past couple of years, especially with the unnecessary, excessive restrictions the governor placed upon them during the months he was abusing his emergency powers. The state has collected more tax revenue than it needs and it’s time to give these dollars back to their rightful owners – the taxpayers of Minnesota. This includes ending the state tax on Social Security and replenishing the unemployment insurance trust fund to stop the tax increase businesses face this month.”
In its report, MMB also indicates the structural balance in the FY 2024-25 planning estimates remains positive and largely unchanged from November.?It also says uncertainty due to inflation and geopolitical conflict pose risk to the budget and economic outlook.