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State Budget Surplus Grows Much Larger Than Expected

Mal Meyer — Feb. 28 2017
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ST. PAUL, Minn. (AP) —Minnesota’s projected budget surplus has grown to more than $1.65 billion.

State budget officials released the updated figures Tuesday. Lawmakers had previously been expecting a $1.4 billion budget surplus.

The revised estimate kicks off the Legislature’s budget-setting process at the Capitol this year. They’ll need to approve a new budget before adjourning in late May.

But there have already been signs that it won’t be easy. Gov. Mark Dayton has proposed a nearly $46 billion, two-year budget that Republicans say increases spending too much.

And GOP lawmakers who control the Legislature have signaled they’ll press the Democratic governor for a hefty tax relief package after two years without tax cuts. Dayton previously lined up roughly $300 million in tax relief.

Governor Mark Dayton wants continue to put money into early education and save some of the money to prepare the state for future economic downturns.

The Republican-led Legislature wants to cut taxes and spent some of the surplus on things like state infrastructure.

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By — Mal Meyer

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