ST. PAUL – State lawmakers can now begin setting a budget course for Minnesota over the next two years after learning our state has a $1.65 billion budget surplus.
This news was revealed by state economists on February 28, and State Representative Bob Gunther (R-Fairmont) noted the total was higher than what was previously estimated.
"I’m delighted the economy is headed in the right direction and there’s another $250 million available,” Gunther said. “The down side to that is that Minnesotans created this growing surplus by paying too many taxes, so it’s time we look at ways to bring them some relief.”
Larger growth in Minnesota’s tax revenues is the main reason for the surplus growth. State income tax projections are up by $274 million over November and corporate tax projections are up $69 million.
With $1.6 billion at its disposal, Gunther said the Legislature’s main focus should now be providing middle-class Minnesotans with long-overdue tax relief.
“Now is not the time to go on a wild spending spree,” Gunther cautioned. “As we set our budget, we should fund our key priorities, pay for the things that are most important to the state, and ensure that hardworking Minnesotans are allowed to keep more of their money.”