The office of Minnesota Management and Budget (MMB) on Thursday released their annual November economic forecast. The report, which details the state’s budget picture, projected a surplus of $1.544 billion for 2020-21 budget cycle. By statute, $491 million of the surplus will be allocated to the budget reserve. That brings the budget reserve total to just over $2 billion.
“The surplus is good news, but it is only part of the equation,” said Sen. Roger Chamberlain (R-Lino Lakes). “As I have stressed repeatedly, the state demographer has issued a warning that is about as clear as can be: we have to prepare our economy for the massive demographic shift on the horizon, and we have to prepare now. That means bold, significant tax relief that creates more opportunities and prosperity for families, schools, communities. This is what will drive our economic success. We can’t rest on our laurels simply because we have a budget surplus right now.”
In the last biennial budget, Senate Republicans passed the largest tax relief package in nearly two decades, benefiting seniors, college graduates, Main Street businesses, and farmers. Republicans will consider more tax relief in light of the significant budget surplus.
Looking ahead, MMB also projects a significant structural surplus of $456 million for 2022 and 2023.
Forecast documents