Burnsville's State Rep Reacts To Budget Surplus

The Office of Minnesota Management and Budget (MMB) released the February economic forecast last week, revealing updated budget numbers as lawmakers begin crafting the state's next two-year budget for the 2018-2019 biennium. For the 2018-2019 biennium, Minnesota is projected to have a $1.65 billion surplus—an increase of about $250 million compared to the November forecast late last year.

Minnesota's budget is structurally balanced, with a $2.124 billion surplus projected for the 2020-2021 biennium.

“Today’s news that Minnesota is forecasted to have a $1.65 billion surplus shows it is time to pass tax relief for hardworking Minnesota taxpayers,” said Rep. Drew Christensen, who represents Burnsville, in a statement. “I look forward to crafting a budget that respects taxpayers by providing tax relief, eliminating wasteful spending, and ensuring tax dollars are funding our shared priorities.”

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, according to a news release.

Budget targets are expected to be released in the coming weeks as legislators continue work on the 2018-2019 biennial budget.

Image via Minnesota House of Representatives