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.

“For the last three years, Republicans have focused on reducing taxes and limiting government bureaucracy,” said Senator Mike Goggin (R-Red Wing). “Democrats are proposing increased spending in light of the surplus forecast rather than recognizing that it belongs to hard-working Minnesotans. We will continue our efforts to lower taxes and hold government responsible to every Minnesotan.”

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.

“This surplus reinforces that we are overtaxing the people of Minnesota,” added Senator Goggin. “For the last three years, I have passed bills to reduce the social security income tax. I am committed to advocating for further reduction in coming sessions until the tax is eliminated. We will maintain and grow this healthy economy by enforcing responsible government spending and keeping your money in your wallets.”