Talking Points: Will Taxpayers Be Reimbursed Amid A $17.5 Billion Budget Surplus

By Esme Murphy, CBS Minnesota

March 16, 2023

ST. PAUL -- In 2020, Minnesota and several other states got their budget projections wrong. It was the start of the pandemic and almost all states forecasted big deficits to come. Instead Minnesota, like most states in the country, went on to post-budget surpluses during the pandemic years.

Minnesota's $17.5 billion surplus is the biggest in the region and one of the largest per capita in the country. The surplus is due to multiple factors, including billions in one-time COVID-19 pandemic aid from the federal government, and a falling unemployment rate, which meant more people were working, shopping and paying taxes. Another contributing factor was rising interest rates, which helped the state earn more on investments.

Gridlock in the capitol for the past few years has lead to a gridlock on how to spend the money, or whether to give it back. Democrats in charge of the Capitol this session see this as an opportunity to pass priorities they believe will tackle the state's challenges. But they also vowed "responsible budgeting."

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