Minnesota budget surplus grows to $17.6B
MANKATO, Minn. (KEYC) -Minnesota’s budget outlook for 2023 was released Tuesday, and early reports said that the state’s surplus has grown even more since this time last year.
The outlook showed that Minnesota will see a record $17.6-billion surplus in 2023, a substantial increase over the $9.25-billion surplus in 2022.
Reactions from state lawmakers are varied, with some looking forward to the various places where the money could end up...
“I think we want to address where we might have tax cuts. I think we want to address where we might have spending. I favor spending on education, public safety, long-term care facilities, some of our basic needs. I do favor support for cities and counties because that helps keep property taxes down,” said Senator Nick Frentz (DFL - North Mankato).
...while others believe that the surplus is indicative of how Minnesota handles tax policy.
“What that tells you is that you’ve got more tax money coming in than what you’re expending or what you even need to run your government so that’s, I mean that’s where it’s all coming from,” said Representative Bjorn Olson (R- Fairmont).
Lawmakers said that the growing surplus is due to an increase of revenue the state received through taxes in the past year, combined with $7-billion that went unallocated during the last session.
This is only an estimate, and more specific numbers will be known in the new year, but lawmakers are already preparing for the extensive discussions that will be had in just one month’s time.
“There’s going to be a lot of ideas in how to spend this, and I’ve already gotten a ton of emails on how to spend this money, but we have to remember that we have a weaker economy,” said Senator Rich Draheim (R - Madison Lake).
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