ST. PAUL – State Representative Bjorn Olson (R-Elmore) said Minnesota’s latest budget forecast projects incoming revenue is outpacing expected expenses by a record amount.
For the current budget cycle that began five months ago, Minnesota now projects a $7.746 billion surplus.
“Surplus discussions are always more comfortable than deficit discussions, but we need to remember while state government clearly has more money than it needs, our working families do not,” Olson said. “They are losing significantly more of their paychecks because it now costs more to heat their house, drive to work, and buy groceries. Moving forward, we need to recognize that families are taking an unwanted financial hit, and that their state government should not be seeking new ways to take more of their money or spend this surplus foolishly.”
According to the Minnesota Management and Budget Office, strong growth in income, consumer spending, higher tax receipts and slightly lowered state spending helped contribute to the surplus projection.
Olson said the improved budget forecast triggers a statutory allocation to the budget reserve, putting the reserve balance at $2.656 billion.