ST. PAUL, MN – Today Minnesota Management and Budget released an updated budget forecast showing a $1.233 billion surplus, $408 million higher than projections released last November.
The new forecast is a stark contrast from Minnesota’s fiscal outlook one year ago, when the state faced a $627 million budget deficit and owed schools over $800 million in debt.
State Representative Jeanne Poppe (DFL – Austin) released the following statement reacting to the February budget forecast:
“Last year the DFL-led Legislature balanced the budget in a way that is honest, transparent, and fair. I think that’s a big reason why Minnesota’s fiscal house is on much stronger footing today than it was a year ago. I’m pleased by the progress we’ve made and I think today’s forecast means we’ll be able to move forward on some priorities like providing additional tax relief for middle class Minnesotans and businesses.”
Poppe said she’s particularly optimistic about repealing a new tax on farm equipment repairs and as well as two other new business-to-business taxes.
The House Taxes Committee passed a $500 million tax cut package this week that repeals all three business-to-business taxes and cuts taxes for middle class Minnesotans by enacting federal tax conformity, which would simplify the filing process and get rid of unnecessary burdens like the so-called “marriage penalty.” According to the nonpartisan House Research Department, eliminating the marriage penalty alone would reduce taxes by an average of $115 per year on 650,000 tax returns.