Minnesota projected to have historic $7.7 billion budget surplus

[mysteryowl]

Growth in income, consumer spending and corporate profits boosted state revenue.
Minnesota economists predicted a $7.7 billion surplus in the state's two-year budget Tuesday, the largest surplus in state history and one that quickly fueled competing demands for the dollars.

"COVID-19 is still here and still dangerous, however our economy is learning how to adapt," Management and Budget Commissioner Jim Schowalter said. "The state's ability to sustain services, to respond to emerging needs, keeps getting better."

Strong growth in income, consumer spending and corporate profits drove the high revenues in the last fiscal year, according to the state's economist Laura Kalambokidis, and high tax receipts are expected to continue as the economic outlook improves in the future.

Meanwhile, state spending estimates in education, health and human services and other areas are down slightly.

The state has reported months of higher-than-anticipated tax collections since the two-year budget cycle kicked off July 1, and is in a far stronger financial position than economists predicted when the COVID-19 pandemic first hit and a budget deficit was expected.


https://www.startribune.com/minnesota-budget-economic-forecast-pandemic/600124603/

[OAITW r.2.0]

1. Then....invest half that surplus in the bottom 50% of the population...and put the rest in Acorns.

That $3.8BB will generate upwards of $15.00BB of taxable income growth.

[mysteryowl]

2. The discussions have begun between Dems and Repukes.

One thing they both will most likely agree on is to replenish the unemployment fund used up during the pandemic.

[Delarage]

3. I'm sure

the Repukes would like it to go towards a tax cut for the top 1% (ala Bush when the Supreme Court appointed him President). Can't let the money sit in a "lockbox," help save the Earth, or help poor people

[dflprincess]

5. If you read the comments at the Strib's article

they're already whining it's "our money, proves we're overtaxed, and it should be returned".

Odds are it's mostly from sales tax which would prove people are buying "stuff". And, as food and clothes aren't taxed in Minnesota, a lot of the "stuff" being bought may not be necessities. That undermines the 'Cons "bad economy" theory.

[WhiskeyGrinder]

4. That big of a surplus when needs aren't being met is shameful tbh.