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.
“By virtually every measure, Minnesota’s economy is in great shape,” said Sen. Jeremy Miller (R-Winona). “This budget surplus is more evidence of that. Now we have to look forward. With divided government, we know there will be compromises as we discuss the next budget, just as there have been for the last two years. I have known Gov.-elect Walz to be a fair-minded person, and I look forward to working with him to find bipartisan solutions that strengthen our economy, grow jobs, and put entrepreneurs and families in the best possible position to succeed.”
In the last biennial budget, Senate Republicans passed the largest tax relief package in nearly two decades, benefiting senior citizens, college graduates, small businesses, farmers, and middle income Minnesotans. Last year’s tax relief package also included an income tax reciprocity tax credit for Minnesotans who work in Wisconsin. The Senate 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