ST. PAUL – State officials issued a new economic forecast for Minnesota on Monday, projecting a $17.5 billion surplus for the new biennium.
The bottom-line surplus figure remains in line with the last full forecast, issued in early December. State Rep. Jeff Dotseth, R-Silver Township, said this signals state revenue continues to grow because the new forecast factored for inflation for the first time in decades.
“This surplus supports the idea that tax relief should be our top priority this session,” Dotseth said. “The state is sitting on a mountain of over-collected tax revenue. Minnesotans are struggling with higher prices across the board. Let’s balance out the equation by providing serious tax relief to stop this revenue hording that’s taking place at the state so people can live more comfortably.
“I remain a proponent of eliminating the state Social Security tax on our seniors and authored a bill to do so, but that’s just the start of what we can do. We also should acknowledge bills the majority is passing this year will have long-term consequences for businesses in our state and, while the majority is going to do what it’s going to do, at the very least we should work to offset the impacts.”
Just hours after receiving the updated economic forecast, House Republicans on Monday sought to fast-track legislation fully eliminating the state tax on Social Security, a move which House Democrats blocked in a floor vote.
Overall, revenue tabulations for the current forecast continued to surpass previous projections for individual income taxes ($565 million) and corporate taxes ($125 million). Sales taxes were down $26 million.
The new $17.5 billion surplus figure will serve as the official framework as the Legislature works to establish a new two-year state budget this session before adjourning in late May.
-30-