An analysis from the Minnesota Management and Budget office detailed that the state’s budget surplus has increased to $9.253 billion.
The new number is an increase from a previous estimate published in December.
“The Minnesota budget and economic outlook remains positive. A forecast improvement of $1.507 billion for the current biennium leads to a revised projected general fund surplus of $9.253 billion for FY 2022-23. A higher income, consumer spending, and corporate profit forecast results in an improved revenue projection while spending is slightly lower in E-12 education and Health and Human Services,” a statement from the group explains.
However, the forecast warned that “inflation and geopolitical conflict pose risk to the budget and economic outlook.”
Much of the funds are related to federal coronavirus relief funds awarded to the state. As many Republicans warned, much of the money has been spent on priorities that are not related to the virus.
In a press conference, Governor Tim Walz indicated he would support increasing money given in rebate checks because of the added money.
Republican leaders in the legislature argued that the enormous amount of funds should allow for tax cuts throughout the state.
“The massive surplus continues to get larger, meaning the state government is simply collecting too much money from the taxpayers. It’s time to give the money back to the people with permanent tax relief for Minnesotan workers and senior citizens,” said Majority Leader Jeremy Miller (R-Winona)
“This is out of control. A $9 billion surplus means government took way too much from taxpayers at a time when people are still struggling to afford everyday life. We have a duty to give it back with real, permanent, significant tax relief. No election-year gimmicks or one-off checks. Minnesotans deserve real tax relief. There’s no excuse,” added Senate Finance Chair Julie Rosen (R-Fairmont).
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Cooper Moran is a reporter for The Minnesota Sun and The Star News Network. Email tips to [email protected]
Photo “Jeremy Miller” by Senator Jeremy Miller. Photo “Julie Rosen” by Senator Julie Rosen. Background Photo “Minnesota State Capitol” by McGhiever. CC BY-SA 4.0.