The office of Minnesota Management and Budget (MMB) announced the results of their annual February economic forecast on Thursday, in which they project Minnesota will have a budget surplus of $1.513 billion for the 2020-21 budget cycle — an increase of $181 million from the November forecast. The forecast notes that Minnesota’s economic outlook remains stable and that statewide low unemployment and strong demand for workers contribute to growth in total Minnesota wage income and wages per worker. The general fund budget reserve remains at $2.359 billion.
State Senator Carla Nelson (R-Rochester) released the following statement:
“The surplus is fantastic news and more proof that our responsible budgeting principles have worked. The economy is in great shape, we fully funded government, and government’s savings accounts are full.
“There will be discussions about how to use the surplus, but I will advocate for tax relief. Minnesota is already one of the highest taxed states in the country. One obvious, bipartisan idea is getting rid of taxes on Social Security income. It’s simply absurd that we continue to tax seniors twice on their Social Security income, which explains why most other states have already eliminated this tax. I have championed this bill in the past, and I will do so again this year.
“I will also support investments to programs that have proven to improve student success and performance, like targeted early learning scholarships and scientific structured reading instruction. Only 55% of students are reading proficiently by 3rd grade right now, and we have to do better.
“Minnesota taxpayers need and deserve significant tax relief – reducing the lowest income tax rate, eliminating Social Security income taxes, expanding tax credits for families with young students, and providing relief for farmers and mom-and-pop businesses.”
Forecast documents: