ST. PAUL, MN—The Office of Minnesota Management and Budget (MMB) released the February economic forecast Tuesday, revealing updated budget numbers as lawmakers begin crafting the state's next two-year budget for the 2018-2019 biennium. For the upcoming biennium, Minnesota is projected to have a $1.65 billion surplus—an increase of about $250 million compared to the November forecast late last year. Minnesota's budget is structurally balanced, with a $2.124 billion surplus projected for the 2020-2021 biennium.
“With an increased surplus, we can look for more ways to provide tax relief for Minnesotans who have been paying too much in their taxes,” said Rep. Sandy Layman, R-Cohasset. “In the coming weeks, we’ll be working to create a responsible state budget to provide middle class tax relief, sustainable education funding, and increased quality of care for Minnesota seniors.”
The $250 million in increased surplus funds come primarily from greater-than-expected revenue from individual income taxes, the general sales tax, and the corporate franchise tax. MMB budget documents note that an improved U.S. economic outlook and positive numbers for key economic data points such as personal income growth, employment, and consumer spending have contributed to the additional surplus revenue.
Budget targets are expected to be released in the coming weeks as legislators continue work on the 2018-2019 biennium budget.