Updated Dec 7, 2021 - Politics

Minnesota projected to have $7.7 billion surplus

Torey Van Oot

Illustration of a common loon sitting on a pile of cash. — Illustration: Brendan Lynch/Axios

Minnesota's state economists are now projecting a $7.7 billion surplus for the government's general fund.

Driving the news: The state Department of Management and Budget (MMB) released its updated budget forecast on Tuesday, giving lawmakers and residents a sense of Minnesota's financial health for the next two-year budget.

What they're saying: "Strong growth in income, consumer spending, and corporate profits drove extraordinary revenues in [fiscal year 2021]," MMB tweeted.

Flashback: Months into the pandemic last year, officials had warned of a potential $1.3 billion deficit. But instead the state's economy rebounded quickly, thanks to higher-than-expected tax collections and an infusion of federal relief cash.

What to watch: Gov. Tim Walz and leaders at the politically divided Legislature will jockey over how to use the funds when the Legislature reconvenes next year.

Soon after the figure was released, GOP lawmakers and business groups released statements calling for tax relief.

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Minnesota projected to have $7.7 billion surplus

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