ST. PAUL – On Tuesday, Minnesota Management and Budget released the February economic forecast which state lawmakers will use to craft a budget for Fiscal Years 2018-19. The state’s surplus for the upcoming biennium is $1.65 billion, up from $1.4 billion in November. This positive budget outlook continues into Fiscal Years 2020-21.
“What this growing surplus shows is that the state collected too much from hardworking taxpayers across our state,” said Rep. Dan Fabian, R-Roseau. “We will be looking to reduce the tax burden of folks, passing a comprehensive tax bill that gives money back to Minnesota families, Main Street businesses, farmers and seniors.”
“As our budget surplus grows, Minnesotans continue to wonder when tax relief will be coming,” said Rep. Deb Kiel, R-Crookston. “We want to turn our state’s surplus into a surplus for hardworking taxpayers too, and House Republicans will be advocating to return money to you through an extensive middle-class tax relief package this session.”
The $250 million in increased surplus funds come primarily from greater-than-expected revenue from individual income taxes, the general sales tax, and the corporate franchise tax. MMB budget documents note that an improved U.S. economic outlook and positive numbers for key economic data points such as personal income growth, employment, and consumer spending have contributed to the additional surplus revenue. Budget targets are expected to be released in the coming weeks as legislators continue work on the 2018-2019 biennium budget.
This budget forecast marks the eighth forecast with a positive balance for the state of Minnesota.