State of Minnesota Announces $17.6 Billion Budget Surplus

December 15, 2022

State of Minnesota Announces $17.6 Billion Budget Surplus

Earlier this month, the state of Minnesota announced that our already-massive budget surplus has gotten larger. The projected surplus for the next budget cycle (FY 24-25, which starts on July 1, 2023) is $17.6 billion. Of the surplus, roughly $6 billion is estimated to be structural/ongoing. You can read more about the projected surplus here. This amount is in addition to a budget reserve of nearly $3 billion, $350 million in the state’s cash flow account, and $684 million in the Stadium Reserve Account (the fund that covers bond payments for the state’s share of the Vikings Stadium).

Source: Minnesota Management & Budget, Dec. 2022 NFIB Minnesota’s position on the surplus is clear: small businesses are chronically overtaxed and deserve permanent relief. We’ll work to educate lawmakers on the importance of reducing individual and corporate tax rates, reducing or eliminating the statewide general property tax, conforming to the federal estate tax exemption, and more. With Democrats in control of state government, tax relief faces an uncertain future. Already, DFL-allied groups are making requests that would eat up the entire surplus and add record levels of permanent new spending. For his party, Gov. Walz has so far taken a cautious tone towards surplus. Given the turbulent economy, he has expressed greater interest in one-time outlays instead of long-term spending increases or revenue reductions. To this end, Walz is again proposing one-time rebate checks instead of permanent relief from some of the highest tax rates in the country. While he hasn’t yet released the details, a similar proposal from last summer included checks of $1,000 to individuals making up to $164,000 and $2,000 to married couples making up to $273,470. The rebate proposal largely received a cool reception from Democrats and Republicans alike in the Legislature last session and some key Democrats remain skeptical.

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