Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

Legislative News and Views - Rep. Steve Green (R)

Back to profile

Rep. Green: Record state surplus means tax relief

Tuesday, December 7, 2021

 

ST. PAUL – A new economic forecast for Minnesota projects a state record $7.7 billion budget surplus for the next two-year budget cycle, a $9 billion turnaround from one year ago.

Minnesota Management & Budget issued an updated forecast Tuesday. It indicates “strong growth in income, consumer spending and corporate profits drove extraordinary revenue growth in FY 2021, and higher tax receipts to date in FY 2022 combine with an improved outlook for income, consumer spending and corporate profits to raise the revenue forecast for the current biennium.”

State Rep. Steve Green, R-Fosston, said this presents an opportunity to provide Minnesotans with meaningful tax relief during the 2022 session.

“There are a couple of ways you can look at this surplus,” Green said. “First of all, it’s good news in that our economy didn’t fall off a cliff as once was the concern. On the other hand, our state government has an egregious over-collection of tax dollars that we now have to fight tooth and nail to get back for hardworking Minnesotans. My top priority in the 2022 session will be to deliver tax relief to make that happen. The last thing we need is for the state to spend these so-called surplus dollars on more government growth.”

Green also said the excess collections also should be used to spare Minnesota businesses from suffering a tax increase that is scheduled to hit them Dec. 15. Record-setting unemployment claims depleted Minnesota’s Unemployment Insurance Trust Fund, resulting in a debt of more than $1 billion to the federal government that is coming due.

“The vast majority of states already have addressed this subject, but Minnesota’s lack of action now could put businesses on the hook for an increase of 15 percent or more to replenish the fund,” Green said. “Our small businesses have had it tough enough the last couple of years with all the restrictions the governor has placed upon them. It’s not right to force them to pay higher taxes because to make up for the fact the governor caused people to be out of work.”

The MMB report also indicates the improved budget forecast “triggers a statutory allocation to the budget reserve, leaving the reserve balance at $2.656 billion. While economic uncertainty and the pandemic pose significant risk to the forecast, the improved outlook carries into FY 2024-25 planning estimates.”

The $7.7 billion surplus follows a $1.3 billion shortfall projected in December of 2020 and a $1.6 billion surplus predicted last February.

-30-