ST. PAUL - State Representative Greg Davids (R-Preston) said there were more positives than negatives to be found in Minnesota's recent state budget forecast, which shows a $1.6 billion budget surplus. This is nearly $3 billion more than the previous projection - a $1.273 billion deficit - made in November.
“This is good news and shows Minnesota’s economy is headed in the right direction even though Minnesotans are still struggling under Governor Walz’s executive orders,” Davids said.
Davids said the overwhelming change is due in part to fiscal actions taken by the federal government that were not taken into account during the November forecast, better than expected revenue collections, and lowered state spending.
Davids said this news should have ended any talks of tax increases. Yet, one day before the updated forecast was released, Governor Tim Walz, Speaker of the House Melissa Hortman and other liberal leaders held a press conference discussing their belief that taxes must be raised, regardless if the forecast showed a surplus or deficit.
“It’s unreal that Democrats would rally with extreme liberal activists pushing for massive tax hikes the day before we get an updated budget forecast," Davids said. "They don't care whether we have a surplus or a deficit — their answer is always the same: raise taxes and take more money from the families and businesses who have already sacrificed so much over the past year. It's wrong to be confiscating money from people during people during a pandemic. Thankfully Republicans will be looking out for Minnesotans and their wallets, and these tax hikes stand zero chance of becoming law."