Minnesota projected to have historic $7.7 billion budget surplus [View all]

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/