Breaking News: The latest semi-annual economic forecast from Minnesota Management & Budget was announced yesterday. It calls for $1.086 billion in surplus revenue over the 2014-15 budget which was approved in May and a $2.2 billion surplus for 2016-17.
This revenue forecast is generated largely from the historic tax hikes Gov. Mark Dayton and fellow Democrats enacted earlier this year. By contrast, the Republican-enacted budget for 2012-2013 generated nearly $3.5 billion more than projected – without raising taxes.
State law dictates how some of this revenue will be applied. The first $246 million will be used to complete repayment of delayed funding to schools. Another $15 million is will go to the state airports fund, restoring money originally borrowed in 2008. Click here for the full report.
It will be interesting to see what becomes of the remaining $825 million. Will Democrats repeal some of the tax increases they passed last session? Will they find new ways to spend it? Will rebate checks to taxpayers be issued?
What would you like to see happen? I welcome your thoughts on the matter. Another full economic forecast will be issued in February and those results will impact spending and taxation decisions in the 2014 legislative session which begins in late February.