Minnesota's budget surplus has nearly doubled since last year's estimate.
According to figures just released from the Office of Management and Budget, the projected surplus is now $17.6B. Part of that is the $9.3M left on the table at the end of the last legislative session, when lawmakers could not come to an agreement on how to spend it. Lawmakers proposed many different ways to spend the surplus, ranging from tax cuts to spending on education and public safety, but none were able to be agreed to. It'll now be up to Democrats, who control both chambers in St Paul, along with the Governor's office to decide what to do with it.
State officials credit stronger economic activity and the leftover surplus year-on-year for the jump.
One thing that isn't figured into the surplus is inflation. WCCO Radio Political Analyst Blois Olson says that could be a key talking point in what to do with the surplus.
"We do not figure inflation into our budget. As we think about what the dynamics are gonna be, what the discussion is gonna be, inflation is going to be a major talking point, especially for groups that get a lot of funding from the state budget. Schools, health and human services organizations, I can't remember a time when inflation was more volatile. If you think about inflation, just think fuel prices and energy prices, those organizations, schools, nursing homes, and groups like that. They have rising prices too. So in theory their ask from the state government is going to be greater. You then talk about wage pressures in those industries and other places including public safety.
We expect to hear from the Governor and other state leaders later today.