The office of Minnesota Management and Budget (MMB) on Thursday released their annual November economic forecast. The report, which details the state’s budget picture, projected a surplus of $1.62 billion for 2020-21 budget cycle. By statute, $284 million of the surplus is allocated to the budget reserve, which is now full funded at $2.36 billion. After the reserve transfer, Minnesota is left with a $1.33 billion surplus.
“It is always better to have a surplus than a deficit, but we shouldn’t let today’s good news mask the challenges facing us in the near future,” said Sen. Roger Chamberlain (R-Lino Lakes) “Times won’t always be this good, so we have to prepare now. That means generous tax relief for working families, it means preparing young people for the skilled jobs of tomorrow, and it means helping students get out of schools that are failing to meet their needs.”
Since taking the majority in 2017, Republicans have focused on strengthening Minnesota’s economy by connecting employers to the skilled workers they need with investments in career and technical education, and scholarships for students entering in-demand fields. Republicans have also prioritized tax relief for the people who make the economy churn: college graduates, working families, Main Street businesses, and farmers. In consecutive budgets, the Republican majority passed a $650 million tax relief package that was the largest in nearly two decades and the first middle class tax cut in twenty years.
Forecast documents