On Monday, Senate Democrats passed a bill that would assume automatic increases in government spending and would limit the amount available for tax cuts in the case of a surplus. 

“This bill allows the government to artificially stack the numbers in its favor in order to rationalize raising or maintaining taxes, and does nothing to help the people of Minnesota,” said Senator Zach Duckworth (R-Lakeville). “This bill moves in the opposite direction of transparency. It allows the government to arbitrarily under report forecasted budget surpluses – something our seniors, families, and small businesses do not have the luxury of doing when it comes to their tax burden, cost of living, and inflation. The government has an $18 billion surplus and doesn’t need any special adjustments to its numbers. Instead, we should be prioritizing and passing adjustments that provide tax relief for the people this legislature serves. It’s time to hold those who made promises of tax cuts, refunds, and eliminating the tax on social security accountable – there’s been plenty of time to deliver on these pledges, yet the people of Minnesota and their needs have taken a backseat to a hyper partisan agenda. They’re still waiting, and we’ll keep fighting until the job is done.”

Inflation is already included as a footnote in the budget forecast, and the bill passed doesn’t clarify which inflation estimate should be used and leaves it to the discretion of the Commissioner of Management and Budget.  The next budget forecast is scheduled for Monday, February 27.