ST. PAUL, MN –  Today Minnesota Management and Budget Commissioner Jim Showalter announced the state’s surplus held about steady at $17.5 billion expected to be left over. That includes a new measure to include inflation, which took about $1.5 billion from the surplus back into government spending automatically. Without inflation, the State is sitting on about $19 billion in extra funds, $5 billion of which is expected to carry over year after year.

“Now is the time to cut taxes for Seniors, families, and business. I am committed to repealing the tax on social security income for every Minnesotan, and I hope we can find bipartisan support for that bill soon. Only 11 other states impose taxes on senior’s social security, and we are an island in the Midwest,” Senator Rob Farnsworth said. “With so much surplus money, we are hearing for all kinds of calls for spending, but the best investment we can make is reducing the tax burden on the people and workers who make our state great. This is a historic surplus that calls for historic, permanent, tax changes.”

Every other year, the Minnesota State Constitution requires the legislature to balance a two-year budget before they adjourn in May. The surplus remains high largely in part to higher than expected income tax collections, along with reduced spending projections in key areas. For example, education spending was reduced due to a lower than expected student enrollment in public schools.