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Legislative News and Views - Rep. Jason Rarick (R)

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REP. RARICK ANALYZES LATEST STATE BUDGET FORECAST

Thursday, March 10, 2016

ST. PAUL - State Representative Jason Rarick (R-Pine City) said that Minnesota is projected to have a $900 million state budget surplus for the 2016-17 budget cycle.

 

"In 2015 we approved a budget that takes care of state spending needs for the next two years," Rarick said. "Because of this, lawmakers shouldn't be looking to use this surplus on new government programs."

 

The only downside to this report, according to Rarick, is that the recent projection is roughly $300 million lower than the previous estimate made in November.

 

According to the Minnesota Management and Budget report, “the sales tax shows the largest dollar amount decrease for FY 2016-17 from the prior estimate, $311 million (2.8 percent). This change reflects lower than expected sales tax receipts so far in FY 2016, the base for this forecast, and weaker projected taxable sales growth in calendar year 2016 and the first half of 2017.”

 

"Recognizing this slight economic downturn, I think our surplus focus should be on ways to return this money to the taxpayers," Rarick said. "Some have suggested using it for one-time projects, such as road and bridge improvements, and that's also a topic worth exploring."

 

Rarick also noted that Minnesota has roughly $2 billion set aside in its rainy day fund.

 

The House and Senate must determine how to allocate the $900 million projected surplus before session adjourns in mid-May.