SAINT PAUL, MN—– On Tuesday, Minnesota Management and Budget released the February economic forecast which state lawmakers will use to craft a budget for Fiscal Years 2018-19. The state’s surplus for the upcoming biennium is $1.65 billion, up from $1.4 billion in November. This positive budget outlook continues into Fiscal Years 2020-2021.
“What this growing surplus shows is that our state is taking too much from Minnesota taxpayers,” said Rep. Brian Johnson, R-Cambridge. “We want to ensure that taxpayers, like the state, are seeing a surplus in their own budget, and I will be advocating for a large, comprehensive tax bill this session that returns money to families, small businesses, college graduates, farmers, seniors and the hardworking taxpayers of our state.”
The $250 million in increased surplus funds come primarily from greater-than-expected revenue from individual income taxes, the general sales tax, and the corporate franchise tax. MMB budget documents note that an improved U.S. economic outlook and positive numbers for key economic data points such as personal income growth, employment, and consumer spending have contributed to the additional surplus revenue. Budget targets are expected to be released in the coming weeks as legislators continue work on the 2018-2019 biennium budget.
This budget forecast marks the eighth straight forecast with a positive balance for the state of Minnesota.