Rep. Davids: Minnesota's economy looks good, for now
Tuesday, December 10, 2013 10:23 AM
ST. PAUL - Following the announcement that Minnesota is projected to see a $1 billion budget surplus for the remainder of the 2014-25 budget cycle, State Representative Greg Davids (R-Preston) said he was pleased with the good news.
"I think this projection continues to reflect the success we had with the 2011 tax bill," said Davids, the former chairman of the Minnesota House Taxes Committee. "There hasn't been a negative budget forecast since that bill became law, so I'm pleased with the progress."
Of the $1.086 billion projection, Davids said $246 million would be used to pay off the remainder of Minnesota's school budget shift. Another $15 million would then be transferred to the state's airports fund, an area where the Legislature had borrowed money in 2008. Roughly $825 million would remain if this surplus projection remains accurate.
Davids said the 2013 budget crafted by the Democratic-led legislature and Governor Dayton increased spending by more than $3 billion, and forced $2.1 billion in tax increases on all hardworking Minnesotans. As this budget has only been in place for a few months, Davids said the true impact of these decisions is unknown.
"When you consider we now have a nearly $40 billion state budget, the $1 billion surplus projection isn't quite as impressive as it used to be," Davids said.
"We'll know whether this surplus prediction is going to come true following the next economic forecast in February," Davids continued. "There's no doubt the economy is getting stronger, but my concern is that the Democratic 2013 tax bill is built on a house of cards. Once the impact of their job killing tax increases is felt, its possible things could change for the worse. But for now, I'm pleased we have this projected surplus and am hopeful if it remains that Governor Dayton follows through on his promise to eliminate unneeded business tax increases."