ST. PAUL – State Representative Greg Davids (R-Preston) said Minnesota's February state budget forecast shows a positive balance.
“Our counterparts on the other side of the aisle predicted doom and gloom after November’s forecast showed a slight economic downturn, which was senseless because that prediction did not take into account a pair of federal factors that we knew would make a positive impact,” Davids said. “It’s always good to hear that Minnesota is in sound fiscal shape.”
Minnesota’s economic experts project the surplus total for the remainder of this biennium at $329 million. In December, those same analysts told lawmakers to expect a $188 million deficit.
Reasons for the rising surplus number include greater than expected income, corporate, and general sales tax collections.
Before lawmakers adjourn in May, they will have to allocate the $329 million in order to balance the state’s books. As chairman of the powerful Minnesota House Taxes Committee, Davids’ top priority for this revenue is unsurprising.
“Hardworking Minnesotans created the surplus, so we should find more ways to give it back to them,” Davids said. “Our historic $650 million tax relief proposal last session was extremely beneficial to middle-class Minnesotans, and my preference would be to find more ways to help them out financially this session.”