On Thursday, Minnesota Management and Budget (MMB) released its annual November budget forecast, which shows 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.

“This latest budget forecast shows our economy is performing well, but it also shows the State of Minnesota is collecting too much from its taxpayers,” said Senator Scott Newman (R-Hutchinson). “As we move forward to the 2020 legislative session with the surplus in mind, I am hopeful we will consider policies that lessen the burden on the taxpayers of our state – taxpayers already burdened in one of the highest-taxed states in the nation. Whether through income tax cuts, lower tab fees, or additional tax relief for farmers and small businesses, I believe the budget surplus belongs to Minnesota’s taxpayers.”

In accordance with Minnesota law, $284 million of the forecasted surplus was transferred to the state’s budget reserve. The reserve is now fully funded at $2.359 billion, which leaves a net surplus of $1.332 billion. The legislative session is scheduled to convene on February 11, 2020.

“I want to be very clear:  I will not support this surplus being used as a bailout for the incompetence and mismanagement occurring in certain state agencies, especially in view of the record spending in the budget set last session. As the legislature considers a supplemental budget, we will make sure there is accountability and transparency,” said Senator Newman.

Senator Scott Newman represents McLeod, Meeker, Sibley, and Swift counties in the Minnesota Senate. He serves as chair of the Senate Transportation Finance and Policy Committee.