Budget Forecast Shows Improvement, Tax Hikes are Unnecessary

Feb 26, 2021 by AFP

ST. PAUL, MN – Following the release of the state budget forecast that found a vast improvement to Minnesota’s budget deficit with the state now projecting a $1.6 billion surplus instead of the $1.2 billion budget shortfall for the upcoming biennium, Americans for Prosperity-Minnesota (AFP-MN) State Director Jason Flohrs released the following statement:

“Even as Minnesota’s economic outlook continues to improve, there are still families and businesses across the state struggling to make ends meet due to the double impact of the pandemic and government-imposed shutdowns. Now is the time to put money back into Minnesotans’ hands and back into the economy, reform delivery of government services, and end the trend of double digit spending increases, which we’ve seen in three of the last four bienniums.

“This budget forecast further demonstrates just how unnecessary it is to raise taxes on Minnesotans who are already among the highest taxed in the nation. Lawmakers need to forge a new path away from Governor Walz’s “revenue-heavy” approach that doesn’t involve digging deeper into Minnesotans’ pockets, but rather focuses on where limited resources can be utilized most effectively.”

Background:

$1.2 Billion Budget Shortfall Shows Need for Responsible Spending, Pro-Growth Reforms, 12/1/20

Governor Walz’s Budget Misses Mark, Continues Failed High Tax and Spend Policies, 1/26/21

AFP-MN has been at the forefront of advocating for responsible spending and pro-growth reforms for the upcoming biennium.

In the closing days of the regular session last year, AFP-MN released a guide for lawmakers to help them navigate the challenges ahead, and prepare for the fiscal and economic crisis caused by COVID-19 and business shutdowns.