The Minnesota Management and Budget Office (MMB) released a forecast showing a $1.53 billion surplus, a $181 million increase from the last forecast in Decemeber.
The state legislature will now spend the rest of the session determining what to do with the money.
House DFLers, who hold majority, are proposing investments in early education.
“There is only a ‘surplus’ in the true sense of the word if Minnesotans believe that we’ve fully invested in what Minnesota needs,” said House Speaker Melissa Hortman. “We need to make investments in education, health care, and families’ economic security. With a potential economic slowdown on the horizon, DFLers think it’s important to make investments in the areas that will build a better future for all Minnesotans.”
Senate Republicans, on the other hand, want to offer tax relief.
“The state budget was fully funded last session leaving legislators with important decisions to make this year,” said Senator Mary Kiffmeyer (R-Big Lake). “I intend to use this surplus as a guide as we balance supplemental spending and tax relief. The state savings account is full for the first time, we are getting wasteful government spending under control, and we can guarantee tax relief to Minnesotans. We have repeatedly championed the elimination of bureaucracy and we are seeing real results.”