Minnesota projects $2.4B surplus for fiscal year 2024-25 but trouble after

(The Center Square) – Minnesota’s financial officials project a $2.4 billion surplus for the fiscal year 2024-25, up $808 million from the end-of-session estimate.

Minnesota’s budget and economic outlook remain stable in the current biennium, but a “significant structural imbalance” constrained the budget outlook in fiscal year 2026-27.

The summary notes: “Higher estimates in health and human services and education raise total spending in FY 2024-2027, resulting in a negative structural balance in the next biennium.”

Minnesota expects to face a $2.3 billion deficit in fiscal year 2026-27.

Higher expected consumer spending and corporate profit growth raise the fiscal year 2024-25 tax revenue forecast.

- Advertisement -

The near-term U.S. economic outlook has improved since February, driven by stronger-than-expected consumer spending, business investment, and employment.

For example, a report says Minnesota’s new paid family and medical leave program will cost taxpayers about $628 million more than expected and the PFML tax will be 31% higher than expected in year two.

Senate Minority Leader Johnson, R- East Grand Forks, blamed the small surplus on the $72 billion budget passed by Democrats that depleted the previous roughly $17 billion surplus.

“They spent the entire surplus, raised taxes by $10 billion, and now we are seeing future deficits on the horizon,” Johnson said in a statement. “Minnesotans can’t afford one-party Democrat control.”

Johnson said that Democrats underfunded mandates, which will bring more tax hikes.

“The ‘insatiable appetite’ for tax increases will only grow this session,” Johnson said. “Despite historic funding for education, local schools are proposing local tax increases because Democrats underfunded their mandates. Small businesses are getting hammered with tax hikes, health care costs, and inflation. Consumers are spending more because costs are higher due to inflation.

- Advertisement -

House Speaker Melissa Hortman, DFL-Brooklyn Park, said Democrats will continue to focus on growing the economy.

“Today’s economic forecast shows that Democrats are growing the economy in Minnesota, and that the policies we’ve enacted are supporting Minnesota’s workers, reducing costs for families, and growing the labor force,” Hortman said in a statement. “At the same time, as our economy continues to do well and corporate profits continue to soar, we know there are Minnesotans who aren’t doing as well in their family budges. You’ll see Democrats continuing to focus on growing the middle class, lowering costs, and reducing stress in people’s lives. We will continue working to build a Minnesota that works better for everyone and reflects the values that we all share.”

The 2024 legislative session begins Feb. 12.

DON’T MISS OUT

Be the first to know about the latest news, giveaways, events, and updates from The Black Chronicle!

We don’t spam! Read our privacy policy for more info.

Hot this week

African and Caribbean Nations Call for Reparations for Slave Trade, Propose Global Fund

Nations across Africa and the Caribbean, deeply impacted by...

Sports betting expert offers advice on paying taxes for gambling winnings

(The Center Square) – Tax season is underway, and...

Health care company agrees to pay $22.5 million to settle claims of over billing

A health care company agreed to pay nearly $22.5...

Entertainment district benefits don’t outweigh the cost, economists say

(The Center Square) — Weeks later, after more details...

Business association ‘disappointed’ by WA L&I’s proposed workers comp rate hike

(The Center Square) – The Association of Washington Business...

Two Houston area officers killed as Texas leads US in officer deaths

(The Center Square) – Two Houston area law enforcement...

Trump Warns Against Hiring Political Opponents

(AURN News) — President-elect Donald Trump issued a statement...

Evers’ Office of Violence Prevention proposal meets Republican opposition

(The Center Square) – Wisconsin Gov. Tony Evers’ announcement...

King County to spend $107M to expand green spaces and enhance conservation

(The Center Square) – The King County Council has...

Louisiana regulators chart course toward advanced nuclear energy

(The Center Square) — The Louisiana Public Service Commission...

Indiana lawmakers propose state absorb disgruntled Illinois counties

(The Center Square) – Some Indiana lawmakers have taken...

Illinois quick hits: State’s National Guard helping with Trump’s inauguration

State's National Guard helping with Trump's inauguration ...

Kemp pushes tort reform, introduces tax cut in State of the State

(The Center Square) – Georgia Gov. Brian Kemp hinted...

More like this
Related

Two Houston area officers killed as Texas leads US in officer deaths

(The Center Square) – Two Houston area law enforcement...

Trump Warns Against Hiring Political Opponents

(AURN News) — President-elect Donald Trump issued a statement...

Evers’ Office of Violence Prevention proposal meets Republican opposition

(The Center Square) – Wisconsin Gov. Tony Evers’ announcement...

King County to spend $107M to expand green spaces and enhance conservation

(The Center Square) – The King County Council has...