The office of Minnesota Management and Budget (MMB) on Thursday released their annual February economic forecast. The report, which details the state’s budget picture, projected a surplus of $1.513 billion for the 2020-21 budget cycle, an increase of $181 million from the November forecast. The general fund budget reserve remains at $2.359 billion.
“The surplus is another confirmation that Minnesota’s economy is doing well,” said Senate President Jeremy Miller (R-Winona). “When I was first elected in 2010, the state was facing a projected budget deficit of $6 billion, so having a surplus is always great news. But with that said, we should proceed with some caution when it comes to new spending. The state has a structural balance and the economic outlook is stable, but there is a slowdown projected beginning in 2022. In addition, the coronavirus situation is concerning. I hope we can focus on priorities like the disaster relief assistance program, improving school equalization aid, and tax relief. One item that I’m working on is eliminating Social Security income taxes. We are one of the few remaining states to levy state income taxes on Social Security income. I’ve heard from many constituents across the district that getting rid of this tax is a top priority and I’m working on a bill to get it done.”
Forecast documents