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Legislative News and Views - Rep. Tony Jurgens (R)

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REP. JURGENS DISCUSSES LATEST BUDGET SURPLUS

Friday, March 3, 2017

 

State lawmakers received some good news recently as we learned Minnesota is facing another positive economic forecast.

 

Our fiscal experts say our state now has a $1.65 billion budget surplus. This is $250 million more than was expected from our previous budget forecast that was released near the end of 2016.

 

Going inside the numbers, tax revenues are forecasted to be $321 million more than the November estimate. Nearly 81 percent ($274 million) of the increased tax revenues are from individual income earners. But that revenue growth is offset by $156 million more in spending than projected. That includes $95 million in E-12 education and $73 million in health care, due to more people using these services.

 

An improved U.S. economic outlook and positive numbers for key economic data points such as personal income growth, employment, and consumer spending also contributed to the additional surplus revenue.

 

In addition to the current surplus for Fiscal Year 2018-19, our economists are projecting a $2.1 billion surplus for the 2020-2021 biennium.

 

I was pleasantly surprised to see these figures. With this sizable surplus, some will inevitably call for more spending within state government. While it’s true that we do have some projects that need to be funded this year, particularly when it comes to roads and bridges, I think it’s important that we don’t spend it all and be fiscally responsible.

 

To me, when you continue to have repeated budget surplus projections it’s a sign that you’ve taken too much money from the taxpayers. I’d like to see us focus on tax relief for the middle class and give the people who created the surplus a financial break.