PAUL, MN) – Thursday, Minnesota Management and Budget (MMB) released its annual February budget forecast, showing an estimated budget surplus of $1.513 billion.  The numbers have gone up since the November forecast, which showed an estimated budget surplus of $1.332 billion for the 2020-2021 biennium. The forecast, which is updated twice each year to reflect the state’s revenues and expenditures, will be used to guide the consideration of a supplemental budget during the 2021 legislative session.

The newly unveiled surplus is one of the largest the state has ever seen, and the state reserve continues to reside at its “Fully Funded” $2.359 billion watermark. This is due to a $96 million increase in forecasted revenues and a $91 million decrease in forecasted expenditures. The small budgetary improvement continues into the next biennium. These details point to the current strength of Minnesota’s economy.

“It’s very clear that the 1.5 billion dollar surplus is a result of gross over-taxation. This month’s budget forecast is proof that the state is in great shape. The economy is at an all-time high and unemployment numbers continue to be low. With that in mind, we have to prioritize giving back as much of that money as possible. Minnesota, it’s time to ‘get your billion back!’”

Senate Republicans announced a tax plan last week that includes full social security exemption, reduces the lowest income tax rate, and fully conforms to section 179 for farmers and small-business purchases.