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 Jason Metsa (DFL – Virginia) released the following statement reacting to the February budget forecast:
“Minnesota’s economy is much stronger today than it was one year ago. I’m proud as heck of the progress we’ve made. I think our top priority moving forward ought to be helping people who haven’t felt the economic recovery. That’s especially true of northeastern Minnesota where our unemployment rate is higher than other parts of the state.”
Metsa says passing a strong bonding bill, increasing the state’s minimum wage, and providing tax relief to middle class Minnesotans and businesses are a few of the steps lawmakers can take over the coming weeks to create jobs and spark economic development in the region.
Metsa also explained that the surplus accounts for unexpected revenue on top of the dollars lawmakers used last year to eliminate a deficit, pay back the “school shift,” and make investments in priorities like education.
“I just want to be clear that the surplus is not the result of over-taxation,” said Metsa. “We have a surplus because our economy is growing and more people are going back to work. That’s something we can all be proud of, but it doesn’t mean we should be satisfied. We need to stay focused on jobs and economic development, especially for our communities on the Range.”