The office of Minnesota Management and Budget (MMB) on Thursday released their annual November economic forecast. The report, which details the state’s budget picture, projected a surplus of $1.544 billion for 2020-21 budget cycle. By statute, $491 million of the surplus will be allocated to the budget reserve. That brings the budget reserve total to just over $2 billion.
“I am pleased by the news of the surplus,” said Sen. Michelle Benson (R-Ham Lake). “Minnesota’s economy is doing well and we have much more than enough money to fund Minnesotans’ priorities; there is no reason to subject low income and middle income families to painful tax increases. Instead, government should be prudent, exercise self-control, and focus on eliminating waste and abuse. We have to remember that while government has priorities, families have priorities too; as we work on tax conformity, we should use this surplus to let hardworking Minnesotans keep more of the money they earned.”
In the last biennial budget, Senate Republicans passed the largest tax relief package in nearly two decades, benefiting seniors, college graduates, Main Street businesses, and farmers. Republicans will consider more tax relief in light of the significant budget surplus.
Looking ahead, MMB also projects a significant structural surplus of $456 million for 2022 and 2023.
Forecast documents