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Statement from Rep. Green re: state economic forecast

Friday, February 26, 2021

 

ST. PAUL – State Rep. Steve Green, R-Fosston, 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, a sharp turnaround from the $1.3 billion shortfall projected in December for the same period. 

“While the bottom-line number looks great on paper, there are some details that should remain cause for concern,” Green said. “We need to take a closer look to see how much of this surplus is padded by federal spending. So, left pocket or right pocket, taxpayers may feel the burden one way or another. The only way to fix this for the long term is to get state spending in line. Our Minnesota General Fund budget was around $34 billion 10 years ago and now, the governor’s budget proposal is for $52.4 billion with $1.7 billion in tax increases. This is simply an unsustainable trajectory and I’m concerned what this fiscal insanity will mean for our future – and the bill we will be handing to the next generations of Minnesotans.” 

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. 

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