Guns & Budget Forecast Update

Minnesota’s February state budget forecast shows a positive balance of $329 million.

“Its good news, especially considering we were told back in November to expect a $188 million deficit,” Hamilton said. “It shows we’re on the right economic path and the fiscal decisions we’ve made are working.”

According to the economic experts, rising general sales tax projections, up by $119 million, and corporate tax projections, up $131 million, are the top reasons Minnesota now has a budget surplus. Approval of the new federal tax relief law as well as Congress’ reauthorization of the Children’s Health Insurance Program spending also helped turn the deficit into a windfall.

“Our tax committee members are now taking this information and determining the best ways to utilize this surplus, and I would not be surprised if they propose middle-class tax relief as a top priority,” Hamilton concluded.