SAINT PAUL, MN—The Office of Management and Budget (MMB) released their November Economic Forecast Thursday, revealing a projected surplus of $1.871 billion for Fiscal Years 2016-2017. State law puts $594 million into the state budget reserve, leaving an overall projected balance of $1.206 billion. As a result of Republican restraint, $865 million was left on the bottom line following the 2015 Special Session, helping bolster budget reserves and putting Minnesota in strong fiscal shape heading into 2016.
"This surplus provides us with an excellent opportunity to grow Minnesota family budgets instead of Minnesota state government," said Rep. Dan Fabian (R-Roseau). "Our priorities for next session should be returning money to folks through middle-class tax relief, as well as passing a comprehensive transportation bill to improve roads and bridges."
"With a surplus of well over $1 billion, our focus must remain on the priorities of Northwest Minnesota, and that includes substantial tax relief for families and fixing our local roads," said Rep. Deb Kiel (R-Crookston). "This surplus demonstrates the state has collected too much from hardworking taxpayers, and next session, state leaders can and should pass legislation that returns that money to you."
During his press conference Thursday to discuss the surplus, Governor Mark Dayton also declared his signature proposal to increase the state's gas tax "dead." Both Kiel and Fabian stated that is excellent news for folks across the state who would have seen significantly higher prices at the pump under his plan, hurting family budgets and local small businesses.
In 2015, the House passed a 10-year, $7 billion transportation plan that would fix 15,500 lane miles of road and 330 bridges statewide with bipartisan support. The governor and Democratic lawmakers blocked the measure from becoming law because of their insistence on a gas tax increase.