Minnesota’s Department of Management and Budget (MMB) today released its February revenue forecast, providing information and an outlook for Minnesota’s financial picture. The report shows the surplus holding steady at $17.5 billion with inflation accounting for $1.4 billion going back into state spending automatically. 

“Without inflation being factored in, our state would be looking at a nearly $19 billion surplus,” said Senator Gary Dahms (R ‒ Redwood Falls). “This clearly demonstrates that government is in strong fiscal shape, but it also indicates that we have collected too much revenue from taxpayers.” 

On Monday, February 20, Democrats passed a bill, Senate File 46, allowing MMB to include inflation in its budget forecasting measures for all statutory appropriations, guaranteeing increased inflationary pressures on Minnesotans. This causes the state budget to remain on autopilot. That is, the cost of government will increase automatically and will grow without any legislative input. Previously, Minnesota’s state government could only legally spend money that was directly appropriated to each program. 

“During the coming months, the Minnesota Legislature will work to craft our state’s two-year state budget,” continued Senator Dahms. “Governor Walz’s budget proposal includes tax and fee increases which I strongly oppose, especially considering a large budget surplus. We should instead focus on returning money to hardworking Minnesota families through permanent and ongoing tax relief.” 

Click here to read the full MMB February Budget and Economic Forecast.