The office of Minnesota Management and Budget (MMB) released its annual February economic forecast on Friday. The report, which details the state’s budget picture, projected a surplus of $1.6 billion for the 2022-23 budget cycle, an increase of $2.9 billion from the deficit projected in the November forecast.

“The revised forecast is good news and shows that Minnesota doesn’t need new taxes, but it also doesn’t paint the full picture of our situation or account for how much the federal government has propped us up this past year,” Senator Rich Draheim (R-Madison Lake) said. “Minnesota must remain cautious. We should use this surplus to provide tangible relief to the families, workers, and small businesses that have been struggling as the product of COVID and the Governor’s lockdowns. Our government must also learn to live within its means, which means targeted reform and eliminating ballooning waste. Combined, these efforts will best prepare Minnesota for a future that still remains financially uncertain.”

Senate Republicans have recently announced their 2021 session priorities placing an emphasis on safely reopening Minnesota’s schools and businesses while helping the economy recover. The caucus will also continue to focus on keeping life affordable for Minnesotans by balancing the budget without raising taxes. That means no new gas tax, no income tax, or sales tax increases. Senate Republicans will also ask that government to tighten its belt as well. Republicans will also support families by increasing choices for their kids’ education and working on expanding homeownership in their communities.

Governor Walz recently announced his $52.4 billion budget proposal. His plan includes $1.64 billion in new taxes on Minnesotans and would vault the state to number two in the nation for the country’s highest business tax rate and number three in the nation for highest income tax rates.