Friends and neighbors,
In my last column, I provided a preview of what we were expecting to learn from the state’s upcoming budget forecast on December 7th. This forecast serves as a guide for legislation that we initiate and develop until the February forecast comes out to provide concrete numbers.
At the time, we expected a significant budget surplus. As it turns out, we have a budget surplus of $7.7 billion – a state record.
The surplus was driven by an increase in tax collections, including a 10% projected increase in income tax collections.
The state is taking more money than it needs from hard-working Minnesotans. The government must provide funding for core infrastructure needs, such as education, roads and bridges, and public safety. We have more than enough money to do that.
The Minnesota State Agency budgets are thriving, but regular Minnesotans are not reaping the benefits. Instead, they are seeing a greater share of their paychecks going toward basic necessities like food and fuel because of inflation and supply chain issues.
My top priority is returning the surplus money to the hard-working people of Minnesota to help with the higher cost of basic necessities. Another priority of mine is to repeal the Minnesota Social Security income tax. We have proven that this tax is not needed, and the money saved is vital to people on fixed incomes. Minnesota is one of thirteen states that still tax social security.
Lastly, Minnesota borrowed a little more than $1 billion from the federal government to sustain our unemployment insurance program during Covid. In September, the feds began charging interest on those loans. I will ensure the Minnesota government will repay the federal loan, maintain our unemployment insurance fund, and prevent small businesses from getting crushed by spikes in unemployment insurance rates.
As always, I like to hear from you. Feel free to contact me any time at sen.mike.goggin@senate.mn or 651-296-5612.
I hope you and your family had a wonderful Christmas and New Year! We certainly have a lot to celebrate this holiday season. I hope you were also able to say a quick prayer for the men and women of the military and first responders who are unable to be home as they work to keep us safe here and abroad. Without their service, none of this would be possible.
It is a privilege to serve you!