ST. PAUL, MN) – On Thursday, Minnesota Management and Budget (MMB) released its annual February budget forecast, showing an estimated budget surplus of $1.513 billion.  The numbers have gone up since the November forecast, which showed an estimated budget surplus of $1.332 billion for the 2020-2021 biennium. This is due to a $96 million increase in forecasted revenues and a $91 million decrease in forecasted expenditures. The small budgetary improvement continues into the next biennium and these top line numbers are specific to the General Fund.

“I’m glad to see the state in such an economically sound position,” said Sen. Benson. “That being said, it is time to return the excess funds to our families, seniors, farmers, and main street businesses. Having a fully funded state with full emergency coffers is a blessing, but we shouldn’t glorify over-taxation.  This forecast shouldn’t mean free reign for agency spending. The best way to retain this economic growth going is to give one billion back to the taxpayers.”

The forecast, which is updated twice each year to reflect the state’s revenues and expenditures, will be used to guide the consideration of a supplemental budget during the 2021 legislative session. The surplus is one of the largest the state has ever seen, and the state reserve continues to reside at its “Fully Funded” watermark. Both of these details point to the current strength of Minnesota’s economy. Additionally, the surplus growth is a win for the Senate Republican’s “Get Your Billion Back” tax plan, which has proven feasible.

In accordance with Minnesota law, the forecasted surplus accounts for an automatic transfer to the state’s budget reserve, which is now fully funded at $2.359 billion.