ST. PAUL – The office of Minnesota Management & Budget Tuesday released its new economic forecast for Minnesota, projecting a whopping record $7.7 billion surplus for the next two-year budget cycle.
After the MMB announcement, both Republicans and Democrats proposed differing thoughts what to do with the extra money.
“Good people across our state are suffering the financial pain of histrionic inflation because of Democrat policies raising the costs of nearly every consumable good and service,” said State Rep. Eric Lucero, R-Saint Michael. “State government should not be swimming in excess cash while hardworking Minnesotans continue to contend with the aftermath Gov. Walz closing businesses.”
The MMB report also indicates the improved budget forecast “triggers a statutory allocation to the budget reserve, leaving the reserve balance at $2.656 billion. While economic uncertainty and the pandemic pose significant risk to the forecast, the improved outlook carries into FY 2024-25 planning estimates.”
“The 2022 legislative session begins the end of January and among our top priorities should be massive tax cuts during the 2022 session,” Lucero said. “Of immediate concern is to spare Minnesota businesses from suffering a tax increase that is scheduled to hit them Dec. 15. Record-setting unemployment claims depleted Minnesota’s Unemployment Insurance Trust Fund, resulting in a debt of more than $1 billion to the federal government that is coming due.”
The $7.7 billion surplus follows a $1.3 billion shortfall projected in December of 2020 and a $1.6 billion surplus predicted last February.
-30-