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Minnesota Budget Surplus Continues to Climb

By TJ Jul 13, 2021 | 11:31 AM

(Dene Dryden KNSI) – Minnesota is set to finish its fiscal year with a higher budget surplus than expected.

The Minnesota Management and Budget Office released its Revenue and Economic Update on Monday, showing that the state’s net general fund receipts for the fiscal year 2021 will total about $26.582 billion, 11.2 percent higher than projected in the agency’s February 2021 report.

The revenue source that saw the most gains was corporate sales tax. The state brought in almost $2.396 billion through that tax, 38.4 percent more than anticipated. Individual income taxes, which make up more than half of the state’s total revenues, are estimated to total $14.134 billion, a 12.4 percent increase above February’s projection.

The MMB’s report says drivers of this economic recovery are “continued fiscal and monetary support, the rising share of the U.S. population that is fully vaccinated, and re-openings of state economies.”

Gov. Tim Walz reacted to the news.

“This is good news for Minnesota and proves that our economy is strong,” Walz said in a statement. “Minnesotans got through this pandemic with grit and resilience, and now our COVID-19 Recovery Budget will continue to drive our economic success by supporting small businesses, working families, and students.”

“While we are still recovering from the financial impacts of the COVID-19 pandemic, today’s strong revenue report reflects what happens when we make meaningful investments to help those who were hit hardest,” said Lt. Gov. Peggy Flanagan. “Whether it’s helping students catch up on learning, supporting small businesses across the state, or creating economic security for working families, our budget’s investments in the future of Minnesota’s families will continue to get us back to better.”

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