ST. PAUL - State lawmakers now have a new item on their to-do list this session: determining how to allocate a projected $1.6 billion surplus.
The positive economic news was revealed by state economists on February 26, and State Representative Bjorn Olson (R-Elmore) noted the total was significantly higher than what was previously estimated.
"Considering the previous forecast showed a billion-dollar budget deficit, I'm pleased the economy is headed in the right direction," Olson said.
Olson said the overwhelming change is due in part to fiscal actions taken by the federal government that were not taken into account during the November forecast, better than expected revenue collections, and lowered state spending.
Olson said the surplus also showed that tax increase plans being proposed by House Democrats are unnecessary.
“We need to let our economy grow rather than putting stifling tax hikes on Minnesotans who are still struggling to recover from the pandemic,” Olson said.