ST. PAUL, Minn. – When Minnesota legislators convene in January, they will have the kind of money that makes their work fun. A record budget surplus, $7.7 billion, has been projected by the state Budget Office. There also is $1 billion in unspent federal Covid relief money. How to spend it? How to make the lives oof Minnesotans better? Republicans are talking about significant tax cuts. Democrats say education needs more funding, as well as other government services. To be sure, law requires a portion of surplus go into a reserve fund. Even so, a lot still will be on the table. So what led to this happy news? A factor in the projection is the nation’s gross domestic product, which is expected to be up 5.5% this year and then grow about 4.3% the next year. This translates roughly into additional state tax revenue, although there are myriad other factors too.
