ST. PAUL – Minnesota’s budget surplus continues to snowball and State Rep. Chris Swedzinski, R-Ghent, 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.”
Swedzinski 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.
“It is mind-boggling for our government to have an $10 billion in excess revenue at a time families and businesses throughout Minnesota are struggling with higher prices on gas, food and everything in between these days,” Swedzinski said. “This surplus needs to be converted to meaningful, permanent tax relief and ending our state’s tax on Social Security is just the start of it.
“This massive surplus also underscores the injustice it would be to allow Minnesota businesses to suffer large tax increases by failing to fully replenish the state’s unemployment insurance fund by mid-March. The state has far more money than it needs and the Senate already passed a bipartisan bill that puts this issue to rest. House Democrats need to stop playing partisan games so we can get this done.”
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.