(The Center Square) — Minnesota has net general fund receipts in fiscal year 2021 of $26.5 billion, the Department of Management and Budget (MMB) reported.
Gov. Tim Walz welcomed the news.
“This is good news for Minnesota and proves that our economy is strong. 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.”
Minnesota’s net general fund receipts for FY 2021 are now estimated to total $26.582 billion, $2.6 billion (11.2%) more than projected in the February 2021 Economic Forecast.
State revenues in the final quarter of fiscal year 2021 were $2.121 billion, 28% more than forecast in February.
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.”
Senate Majority Leader Paul Gazelka, R-East Gull Lake, also applauded the announcement, saying the number is “no surprise given the amount of federal stimulus sent to the state.”
“What’s most disturbing is that even in spite of the expected surplus and federal funds, Gov. Walz and legislative Democrats still proposed billions in tax increases on Minnesotans,” Gazelka said in a statement.
“Nearly a billion dollars of tax relief was only possible because Senate Republicans held strong on protecting employees, employers, and families from the harmful and totally unnecessary tax increases proposed by Democrats in St. Paul. Surplus collections are a reminder that government doesn’t need more from taxpayers, it has more than enough already.”
Net individual income tax receipts are estimated to end this year at $1.5 billion, 12.4% more than forecast.
Gross corporate tax payments were $652 million above the forecast, while refunds were $13 million lower than expected.