ST. PAUL, Minn. – Officials with the Minnesota of Office of Management and Budget now project that the state will have a surplus of $3.7 billion. That’s an increase of $1.3 billion from the last forecast put out in November.
The budget office said the near-term economic outlook has improved, with growth expected to persist through 2027, citing higher tax collections. Corporate tax revenues are showing the largest gains due to higher-than-expected corporate profits.
Republicans in Minnesota are already blasting the report as proof of the Democrat’s “runaway spending”.
Spending estimates are largely unchanged from November. However, state officials caution that a revenue deficit is projected in the next two-year budget cycle due to the state’s current spending levels.
Minnesota is coming off a legislative session in 2023 that saw a record $18 billion surplus. Part of that money was sent back to taxpayers in a rebate check, but the DFL-controlled House, Senate and Governor Tim Walz also passed a historic list of progressive spending adding up to $72 billion over two years.
It’s the largest budget in state history. Republican lawmakers had been calling for further cuts to spending.
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