Budget Forecast
The Office of Minnesota Management and Budget recently announced a $1.8 billion surplus forecast for the next budget cycle. Under state law, about one third of the surplus will go to our budget reserves to protect against future economic downturns. As a member of the Taxes Committee and Property Taxes Division, I’m looking forward to continuing to support and advocate for tax relief. We know that one of the keys to a healthy economy is putting more money back in the pockets of Minnesota families, and this surplus presents us with a great opportunity to provide tax relief to families, college students, seniors, veterans, and more.
Thanks to GOP fiscal restraint, $865 million was left unspent at the end of last session which has helped boost our budget reserve and ensure stable fiscal footing. This is one of the many benefits of having balance at the Capitol; without Republicans in charge to look after taxpayers, Governor Dayton and Democrats would have spent every penny of the budget surplus with minimal, if any, tax relief.
My Republican colleagues and I led the charge on tax relief during the 2015 session. I worked to repeal the statewide property tax, a tax that hurts small businesses and accounts for about 30% of a business’s total property tax bill, and was proud to support more than $2 billion in proposed tax relief during the last legislative session. Unfortunately, due to Democrats' insistence on a gas tax, the tax bill was put on hold until next year.
Governor Dayton's own budget office told us earlier this year that part of the reason for Minnesota's strong economy was low gas prices and families with more money to spend in the local economy. If we want to continue this positive momentum, we should be putting even more money in the pockets of families through tax relief. You know as well as I do that families know much better than government how to spend their hard-earned dollars, and I'm confident that targeted tax relief will translate to a growing economy that lifts up all Minnesotans.
As always, please contact my office with any questions, concerns, or suggestions. I’m always open to listen and discuss any ideas you may have. You can reach me at (651) 296-6926 or Rep.Jon.Koznick@house.mn.
Have a great week,
Jon Koznick
State Representative