ST. PAUL – Minnesota’s budget surplus continues to snowball and State Rep. Jordan Rasmusson, R-Fergus Falls, said the conditions remain ripe for permanent tax relief at a time people are facing higher costs of living.
Minnesota Management & Budget issued its February economic forecast Monday and it projects a $9.3 billion biennial surplus. That figure is up $1.5 billion from the already historic $7.7 billion surplus projected in November. State officials indicate “A higher income, consumer spending, and corporate profit forecast results in an improved revenue projection while spending is slightly lower in E-12 education and Health and Human Services.”
Rasmusson said the state already is fully funded for the biennium, meaning robust tax relief should be in store with the state’s whopping excess revenue.
“People continue to feel the pinch from spiking prices we’re seeing on pretty much everything in the Biden-Walz economy,” Rasmusson said. “Meanwhile, Minnesota has an exorbitant sum of revenue that the state has over-collected from taxpayers. It is obvious that permanent, meaningful tax relief should be in store for this session, starting with eliminating our state’s tax on Social Security and alleviating the huge tax increase our businesses are facing this month on their unemployment insurance rates.”
In its report, MMB also indicates the structural balance in the FY 2024-25 planning estimates remains positive and largely unchanged from November.?It also says uncertainty due to inflation and geopolitical conflict pose risk to the budget and economic outlook.
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