Talk of Rebates Returns as Minnesota’s Budget Surplus Hits $17.6 Billion
ST. PAUL (KVRR) — Tough economy? It doesn’t appear to be the case in Minnesota as the state now projects a surplus of $17.6 billion dollars through 2025.
A large chunk of that surplus is due to the legislature’s failure to act on an $8 billion tax cut before the midterm election.
Republicans wanted to wait it out until the next legislative session, but in the process they lost control of the Senate, creating a Democratic trifecta.
Higher than expected tax receipts are also contributing to the massive surplus.
The state budget was $52 billion over the past two years.
Gov. Tim Walz and state lawmakers will debate a new two-year state budget in 2023 and he would still like to return some money to taxpayers.
“Get money back in the hands of people, get some of this back in the form of rebates to people to be able to use as they see fit. And we had the opportunity as we’ve talked about and we proposed in 2019 around the Social Security tax repeal for a large number of Minnesotans to make sure that’s easier for them,” said Gov. Walz.
State Sen. Kari Dziedzic, the incoming majority leader said, “Starting in January, with this legislative trifecta, we will use this tremendous opportunity to help Minnesotans afford their lives.”
Incoming House Minority Leader Lisa Demuth of Cold Spring says Minnesotans are being massively overtaxed.
She wants to give back as much of it as possible.
The next legislative session begins January 3.