The Minnesota Management and Budget agency (MMB) announced on Thursday, December 6 that the State of Minnesota is projected to have a budget surplus of $1.544 billion. The state’s budget reserves, also known as the “rainy day fund”, are at record levels, totaling $2.075 billion. The forecast anticipates an over $1.9 billion increase in the cost of current state government programs compared to spending in the last two-year budget period.

“Due to fiscal restraint and strong legislative leadership, Minnesota has a staggering budget surplus,” said Senator Mark Koran [R-North Branch]. “But we need to be clear, that even after projecting an almost $2 billion increase in government spending, Minnesota still over collected $1.5 billion from hard working Minnesota families. With state budget reserves at historic highs, Minnesotans deserve to have their money returned to their wallets.”

In March, MMB will release an updated forecast that the legislature will use for setting the state budget.

“If the legislature were to hold our total state spending levels steady at our previous budget of over $45 billion, Minnesota’s overcollection of tax revenue would soar to over $3.4 billion,” added Senator Koran. “Our last budget included the largest tax relief package for Minnesota families in nearly two decades, and it resulted in this surplus. Once again, hardworking Minnesotans deserve to have their money returned to them. A top priority this session will be making our state tax code less complicated.”