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 $1.62 billion for 2020-21 budget cycle. By statute, $284 million of the surplus is allocated to the budget reserve, which is now full funded at $2.36 billion. After the reserve transfer, Minnesota is left with a $1.33 billion surplus.
“For the last four years, Senate Republicans have had a laser-like focus on improving family budgets and strengthening our economy,” said Sen. Michelle Benson (R-Ham Lake). “Once again, the numbers and the data clearly show that our policies work, but the real credit for the surplus goes to the hardworking Minnesota taxpayers who made it possible – they should get the money back.
“This surplus should also definitively end any talk of tax increases,” Sen. Benson added. “Last session, we passed a bipartisan budget that fully funds state government through the biennium. There is no need for tax increases.”
Since taking the majority in 2017, Republicans have focused on strengthening Minnesota’s economy by connecting employers to the skilled workers they need with investments in career and technical education, and scholarships for students entering in-demand fields. Republicans have also prioritized tax relief for the people who make the economy churn: college graduates, working families, Main Street businesses, and farmers. In consecutive budgets, the Republican majority passed a $650 million tax relief package that was the largest in nearly two decades and the first middle class tax cut in twenty years.
Forecast documents