Minnesota State Budget Sits at $1.8 Billion Surplus
Friday was a great day for the great state of Minnesota. The state budget office announced that the budget surplus grew to almost $1.9 billion dollars. This represents an increase of about $832 million, the most recent forecast which was released in last November.
Governor Mark Dayton has come along way since the government shut down back in July 2012. But Governor Dayton doesn’t contribute tax increases to the increase in state revenues.
“It hasn’t come from higher tax rates. Tax rates haven’t changed since the last legislative section.” Governor Dayton commented.
Governor Dayton contributes the increase in state revenue to the states strong economic recovery after the financial crisis of 2008.
“This surplus comes from more Minnesotans working than ever before in our states history, and from more of them earning higher incomes than every before.”
So with a nice surplus going into the next biennium Governor Dayton in his new budget proposal called for increase in spending toward education, health and human services, and also child/dependent care services. Dayton’s new budget proposal calls for $651 million in new spending, with the majority going towards education.
House Republicans plan on releasing their 2016-2017 state budget proposal any day now. There is disapproval of Dayton’s current proposal by the Republican Party, with the party wanting Governor Dayton to use to current surplus to cut taxes.
“From this forecast, we've learned that that's what is going to help Minnesota families and that's what is going to help Minnesota's economy,” said House Speaker Kurt Daudt, R-Crown.
In a report released by the finance site WalletHub in August, Minnesota was ranked 8th overall in education, while being ranked 6th in school system quality.
A few investment proposals include universal pre kindergarten for all 4 year olds, a two year tuition freeze at the University of Minnesota, and an increase in scholarships for families to gain access to better child care.
Regardless of how you think it should be spent, the good news is Minnesota’s long-term economic outlook is positive. Buckle up folks, things are about to get interesting here in the land of 10,000 lakes!