ST. PAUL – State Rep. Lisa Demuth, R-Cold Spring, issued the following statement after Minnesota Management & Budget on Tuesday issued a budget forecast which calls for a $641 million state revenue surplus through June 30 – reversing a previously projected $2.4 billion shortfall – and a $1.3 billion shortfall for the 2022-23 biennium, which also marks a significant improvement from earlier predictions.
“This forecast certainly is brighter than the dire outlook projected in recent months,” Demuth said. “Lower-than-expected Medical Assistance utilization and reduced public school enrollment linked to parents seeking other educational options for their children are major factors in reduced state spending. Furthermore, tax revenues were greater than expected, in large part because our economy has been rebounding and income tax revenue did not fall as sharply as earlier anticipated. This improved bottom line will be helpful as we continue working on delivering relief to Main Street businesses that have been disproportionately damaged by restrictions that have been placed upon them.”
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