On Thursday, Minnesota Management and Budget (MMB) released its annual November budget forecast, showing an estimated budget surplus of  $1.332 billion for the 2020-2021 biennium. 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 upcoming legislative session.

“The budget forecast, including a fully-funded reserve, is certainly encouraging, but the surplus also signals the state is collecting too much from the taxpayers,” said Senator David Senjem (R-Rochester). “I caution my fellow legislators not to use the budget surplus as an excuse to raise taxes or leverage additional fees. Instead, the surplus presents us with a real opportunity during the upcoming legislative session to make responsible investments in our state and its taxpayers. The surplus will allow us to explore additional middle-income tax cuts, a further phase-out of the Social Security income tax, and long-term road and bridge enhancements.”

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. The legislative session is scheduled to convene on February 11, 2020.

Senator David Senjem, of Rochester, represents Dodge and Olmsted counties in the Minnesota Senate. He serves as chair of the Senate Capital Investment Committee and is a former majority leader and minority leader.