Republicans will consider new tax relief in next biennial budget

New budget estimates released by Minnesota Management and Budget show the last Republican budget led to a $1.5 billion budget surplus heading in to the 2020-21 biennium. The state’s rainy day fund will receive a $491 million infusion, bringing it to a record high of over $2 billion. Minnesota also has a significant structural surplus moving forward through the 2022-23 biennium.

In the last biennial budget, Republicans passed the largest tax relief package in nearly two decades, benefiting seniors, college graduates, Main Street businesses, and farmers. Republicans will consider more tax relief in light of the significant budget surplus.

“The last budget passed by the Republican-led legislature, combined with the hard work of Minnesota workers, led to today’s surplus. We clearly won’t need tax increases to fund Minnesotans’ priorities in 2019, and we should do more to make sure families can keep their hard-earned money,” said Senate Majority Leader Paul Gazelka (R-Nisswa).

“This surplus shows that the Republican approach of lowering taxes and restraining runaway spending works. Democrats predicted doom-and-gloom when we passed our tax bill last session, but instead our state’s budget picture is stronger than ever,” said House Republican Leader Kurt Daudt (R-Crown).

“Today should be the last time anyone around the Capitol talks about raising taxes this session. We know that Minnesotans won’t support massive tax increases with a billion dollar surplus—that’s why House Republicans are ready to stand up for your pocketbooks, and fight for meaningful tax relief for Minnesotans whose hard work has helped put our state on sound financial footing.”