St. Paul, Minn. – Today, Minnesota Management and Budget released the February Economic Forecast projecting a budget surplus of $329 million. This is a change from the most recent projection in November showing a $188 million deficit. The shift can largely be attributed to a short-term increase in revenue following the federal tax bill’s recent passage, as well as Congress’s overdue reauthorization of Children’s Health Insurance Program funding.
State Rep. Jennifer Schultz (DFL – Duluth) released the following statement:
“While a budget surplus is certainly better than the alternative, our economic picture gives us reason to be very cautious moving forward. Last session, Republicans passed massive tax giveaways for the wealthy and special interests like big tobacco instead of making greater investments in what we all value. Yesterday, U.S. News & World Report ranked us the second best state in the nation. If we continue down the Republican path, Minnesota could soon start slipping.
“Looking ahead, if we’re to deliver a world class education, affordable and accessible health care, modern transportation infrastructure and so many other items Minnesotans deserve, we must start budgeting honestly and responsibly. Additionally, with continued federal uncertainty, our situation should be seen as tenuous at best. This means rethinking unnecessary corporate tax breaks so we can put ourselves in a position to make the necessary investments in what really matters: our people.”