The office of Minnesota Management and Budget (MMB) released its annual February economic forecast on Friday. The report, which details the state’s budget picture, projected a surplus of $1.6 billion for the 2022-23 budget cycle, an increase of $2.9 billion from the deficit projected in the November forecast.

“It’s great news that the forecast situation has improved from where we thought it would be just months ago, but we have to remain focused,” Senator Mark Koran (R-North Branch) said. “Minnesota’s economic outlook is still bleak as a result of the pandemic and Walz’s shutdown. Unemployment continues to remain high, and our small businesses — especially in the hospitality industry —are standing on the brink. When crafting our two-year budget, we must show restraint and place an emphasis on them. That means no new taxes,  controlling government spending, and focusing on initiatives that will get Minnesota open and people back to their daily lives.”

Senate Republicans have recently announced their 2021 session priorities placing an emphasis on safely reopening Minnesota’s schools and businesses while helping the economy recover. The caucus will also continue to focus on keeping life affordable for Minnesotans by balancing the budget without raising taxes. That means no new gas tax, no income tax, or sales tax increases. Senate Republicans will also ask that government to tighten its belt as well. Republicans will also support families by increasing choices for their kids’ education and working on expanding homeownership in their communities.

Governor Walz recently announced his $52.4 billion budget proposal. His plan includes $1.64 billion in new taxes on Minnesotans and would vault the state to number two in the nation for the country’s highest business tax rate and number three in the nation for highest income tax rates.