The Office of Management and Budget (MMB) released its February revenue forecast earlier today, providing an updated outlook for Minnesota’s financial future. According to the report, the state has a $1.513 billion surplus for the remainder of the 2020-21 budget cycle –$181 million larger than what was projected in the November forecast. Looking ahead, the forecast projects stable, but slower economic growth with fewer collections continuing into 2022-23.

“Today’s forecast is positive news, going higher than what we expected in November, but it also clearly indicates that we’ve collected too much from Minnesota taxpayers,” said Senator Howe (R-Rockville). “Our state remains amongst the highest taxed states in the nation, and Minnesota families are feeling the burden. Rather than continue spending Minnesotans deserve to get their billion back. With budget reserve fully funded, we have a clear-cut opportunity to really reduce tax rates, end the tax on social security, and deliver much-needed relief to Minnesota’s families, farmers, and businesses.”

Last week, Senate Republicans announced a multifaceted plan to return Minnesota’s budget surplus to taxpayers. The Senate Republican tax plan emphasizes putting money back in the pockets of families and individuals, particularly middle-income and low-income earners, so they have more security, freedom, and flexibility to chase their dreams. This is the marquee piece of Senate Republicans’ Vision 2020 Agenda, which was unveiled in January.