Minnesota Management and Budget announced today that Minnesota now has an excess surplus of $4 Billion. While Minnesota legislatures are required to pass a balanced budget a surplus happens when the tax revenue far exceeds actual expenditures.
The Budget Surplus is 1.5B however the state has already over 2.7B of surplus money in the budget reserve that’s often referred to as “rainy day fund”
Minnesota was already running a surplus but the MMB announced that a larger surplus due to an increase in the general fund tax collection and a similar-sized reduction in spending estimates.
Democrats were quick to respond with new spending proposals to offset the surplus. Conservatives, however, see this as proof that Minnesota residents are overtaxed and that money should be returned to the taxpayers.
Conservative Representative Cal Bahr in a letter to constituents said he supports returning the full surplus to the taxpayers, which amounts to nearly $1,400 per tax filer.
Senate Republican Caucus Leader Paul Gazelka has previously told Alpha News in an interview that he supports targeted tax cuts including the elimination of the Social Security Tax and a very modest reduction in the lowest tier of the income tax.
WATCH: Senate Republican Tax Cut Plan