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.
“This budget surplus is wonderful news, but it also makes me wonder what could have been,” said Sen. Julie Rosen (R-Vernon Center). “Government spending has been increasing at an unsustainable pace, and there are far too many examples of waste and abuse. Our economy is in great shape in spite of those flaws; imagine where we could be if we finally got them under control? As Finance Chair, I am confident we will be able to find common ground with Gov.-elect Walz, but I will push for more spending restraint and more responsible budgeting. We have a duty to be good stewards of taxpayer dollars.”
In the last biennial budget, Senate Republicans passed the largest tax relief package in nearly two decades, benefiting seniors, college graduates, Main Street businesses, and farmers. Republicans 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