Next legislature could have even bigger budget surplus

As the incoming Democratic majority at the Minnesota Legislature awaits the next budget forecast early next month, indications are that they might have an even bigger budget surplus.

Tax collections for the month of October were 126 million dollars more than predicted — higher in all categories except corporate tax payments.

Since the beginning of the fiscal year in July, tax revenues (at 9.2 billion dollars) are more than 400 million dollars higher than last February’s projection.  The total predicted budget surplus is in the range of 12 billion dollars, and these higher-than-forecast tax collections could increase that number.  Because the 2022 Legislature deadlocked, what to do with that money will be Democrats’ decision after the election not only left them with the governor’s office and a House majority, but also gave them control of the state Senate come January.