ST. PAUL – State officials issued a new economic forecast for Minnesota on Monday, projecting a $17.5 billion surplus for the new biennium.
The bottom-line surplus figure remains in line with the last full forecast, issued in early December. State Rep. Lisa Demuth, R-Cold Spring, said the report signals state revenue continues to grow because this forecast factored for inflation for the first time in decades.
“While inflation hasn’t hurt government tax revenue, it has significantly hurt Minnesotans’ buying power,” Demuth said. “It’s time to get serious about giving the surplus back to the taxpayers so they can afford their lives in the face of historic inflation driving up the cost of basic necessities. We have finished eight weeks of legislative activity without major tax relief for Minnesotans, but spending and divisive policies are moving quickly through the Democrat-led legislature to reach the governor’s desk. Republican legislators are rolling out our own tax plan because we know it’s never too early to give the money back and we have plans to do so.”
Just hours after receiving the updated economic forecast, House Republicans on Monday sought to fast-track legislation fully eliminating the state tax on Social Security, a move which House Democrats blocked in a floor vote.
Overall, revenue tabulations for the current forecast continued to surpass previous projections for individual income taxes ($565 million) and corporate taxes ($125 million). Sales taxes were down $26 million.
The new $17.5 billion surplus figure will serve as the official framework as the Legislature works to establish a new two-year state budget this session before adjourning in late May.
-30-