Another whopper of an announcement from the state's budget office today. Minnesota has a $2.4 billion surplus for the last two-year budget cycle.
That money is in addition to a $1.6 billion surplus already predicted for the current state budget.
WCCO Political Analyst Blois Olson says it will be interesting to see how lawmakers handle it given the most recent $18 billion surplus, and it being an election year.
"Even if you were in favor of some of the spending that came out of the last legislative session, with inflation, higher other costs, housing costs, local property taxes going up, that I think there's going to be a sense like we need to give some back," says Olson. "Or find some tax relief for Minnesotans."
Already, legislative Republicans are calling for tax relief. DFL leaders say bonding projects and lowering childcare costs would top this list of what to do with the extra money.
"I mean, that's a predictable message from Republicans and I think that it's going to be a more popular message, in light of the spending from last session," Olson said. "And in light of increased property taxes across the State of Minnesota."
The 2022-23 biennium ended with a balance $820 million higher than estimated at the end of the 2023 legislative session. Final revenue for the biennium closed $739 million (1.2%) higher than estimates. General fund spending for the closed biennium was also $81 million lower than prior estimates.
That money gets tacked on to the already existing surplus to bring the total up to the $2.4 billion. Lawmakers will get final numbers from the budget office later in December.
During the last legislative session, Governor Tim Walz and lawmakers sparred over what to do with a $18 billion surplus. There was a rebate sent to Minnesotans, but it was a fraction of the actual surplus. The DFL controlled House and Senate also passed a historically large state budget of $72 billion.