Minnesota budget officials project $7.7 billion surplus heading into 2022

·1 min read

Minnesota's state economists are now projecting a $7.7 billion surplus for the government's general fund.

Driving the news: The state Department of Management and Budget (MMB) released its updated budget forecast on Tuesday, giving lawmakers and residents a sense of Minnesota's financial health for the next two-year budget.

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What they're saying: "Strong growth in income, consumer spending, and corporate profits drove extraordinary revenues in [fiscal year 2021]," MMB tweeted.

Flashback: Months into the pandemic last year, officials had warned of a potential $1.3 billion deficit. But instead the state's economy rebounded quickly, thanks to higher-than-expected tax collections and an infusion of federal relief cash.

What to watch: Gov. Tim Walz and leaders at the politically divided Legislature will jockey over how to use the funds when the Legislature reconvenes next year.

  • Soon after the figure was released, GOP lawmakers and business groups released statements calling for tax relief.

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