On Thursday, Minnesota Management and Budget (MMB) released its annual November budget forecast, showing an estimated budget surplus of  $1.332 billion for the 2020-2021 biennium. The forecast, which is updated twice each year to reflect the state’s revenues and expenditures, will be used to guide the consideration of a supplemental budget during the upcoming legislative session.

“While it is good that we don’t have budget problems – except for those created by mismanagement of certain state agencies – we must be careful not to think we can go back to St. Paul in February and add a whole new round of substantial spending programs. This surplus does not belong to bureaucrats; it belongs to the taxpayers of Minnesota,” said Senator Bill Weber (R-Luverne). “We need to pursue true tax reform, such as full Section 179 conformity, middle class tax reductions, and others. In addition, with 2020 being a bonding year, we also recognize there are capital needs concerning state assets within our transportation system, our colleges and universities, and more. There are also many worthwhile local projects across our state; perhaps we can pay cash for those projects rather than adding excessive debt to the burden of the Minnesota taxpayer.”

In accordance with Minnesota law, the forecasted surplus accounts for an automatic transfer to the state’s budget reserve, which is now fully funded at $2.359 billion. The legislative session is scheduled to convene on February 11, 2020.

Senator Bill Weber represents Cottonwood, Jackson, Lincoln, Lyon, Murray, Nobles, Pipestone, and Rock counties in the Minnesota Senate. He serves as chair of the Senate Agriculture, Rural Development, and Housing Policy Committee.