ST. PAUL – State Rep. Chris Swedzinski, R-Ghent, issued the following statement in response to Minnesota Management & Budget on Friday issuing a new state economic forecast which projects a $1.6 billion surplus for the 2022-23 budget cycle. This is a sharp turnaround from the $1.3 billion shortfall projected in December for the same period.
“It is encouraging to see Minnesota’s economy improving, from projections of a multi-billion-dollar shortfall just months ago to a position of surplus today,” Swedzinski said. “The fact the state has excess revenue, during a pandemic no less, just further illustrates the governor’s proposal to raise our taxes by $1.7 billion is detached from reality. The improved outlook should make non-starters out of tax increases the governor and fellow Democrats propose. We don't need to be raising taxes on businesses and families who have already sacrificed so much over the past year. Instead, we should be working toward fully reopening our state so families and businesses can work on recovering income they have lost under the governor’s restrictions.”
MMB said the turnaround is due, in large part, to an improved U.S. economic outlook that is bolstered by large federal actions that have emerged since November and were not incorporated in earlier projections. The projected surplus also is related to a higher revenue forecast, lower state spending, and an increased surplus for the current fiscal year.