While Minnesota’s Budget Goes Up, Your Paychecks Shrink

Well, it’s official. Minnesota’s budget office has spoken and the state’s surplus has increased… again. Democrats now have more than $17.5B to play with as opposed to the $17.6B they had to spend at the start of session. 

Now you must be asking yourself: How can the surplus increase when it’s essentially the same as it was from the November forecast? 

From The Associated Press: 

“While the figure from Minnesota Management and Budget is down slightly from the $17.6 billion that the agency projected in November, the forecast now factors in the impacts of inflation on state spending for the first time in 20 years.”

“The new figure also accounts for a little over $100 million that the Legislature already has spent since it convened last month, mostly on bringing the state tax code into conformity with federal regulations and deductions, which resulted in a tax cut for many residents.” 

The new inflation rule allows the state to downplay the dollars it over-taxes Minnesotans and the legislature's spending would also not be counted in the new forecast. Essentially, today’s report is a reminder that the state continues to overtax Minnesotans by millions every month and increases the state’s overall slush fund.   

Despite having hit another benchmark when it comes to the increased surplus, don’t expect Democrats to offer tax cuts or meaningful relief for Minnesota families. Just look at what Democrats were proposing when they had just $17.6B. 

Not only did they want to spend the entire surplus, they also wanted to grow the government budget by 25 percent and pay for the increase by raising taxes by $2.5B. Meanwhile, their offered consolation prize to the very Minnesotans they overtaxed is a check for $1,000 for any individual making less than $75,000. This means blue-collar union workers would most likely not qualify, nurses, and even some teachers. 

Meanwhile, key campaign promises of eliminating the tax on social security benefits have been buried under the guise that it’s just too expensive. Democrats believe that it’s important to take an extra $1,200 a year from seniors on a fixed income. Let that sink in.