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 $1.62 billion for 2020-21 budget cycle. By statute, $284 million of the surplus is allocated to the budget reserve, which is now full funded at $2.36 billion. After the reserve transfer, Minnesota is left with a $1.33 billion surplus.
“Today’s budget surplus is more evidence that Republican policies are working,” said Sen. John Jasinski (R-Faribault). “Over the last three years, Republicans have worked hard on kitchen table issues – lowering taxes for everyone, making sure plenty of jobs are available, and creating an economy that families can afford. Even better, today’s news reinforces that we don’t need to raise taxes on working families. I sure hope any talk of tab fee or gas tax increases can be put to bed.”
Since taking the majority in 2017, Republicans have focused on strengthening Minnesota’s economy by connecting employers to the skilled workers they need with investments in career and technical education, and scholarships for students entering in-demand fields. Republicans have also prioritized tax relief for the people who make the economy churn: college graduates, working families, Main Street businesses, and farmers. In consecutive budgets, the Republican majority passed a $650 million tax relief package that was the largest in nearly two decades and the first middle class tax cut in twenty years.
Forecast documents