We have just learned from the Office of Management and Budget website, the 2023 February Revenue Forecast fell a single percentage point down to $17.5 billion. These are now true numbers Governor Tim Walz (DFL-MN) and the legislature will use for budgeting this legislative session, please return for updates. The December Revenue Forecast was 17.6 billion, So far, all indications with the exception of a recession, should bode well with additional monies projected. We would not have been surprised to see an amount exceeding $20 billion, but also this figure will be paired back in the future with the passage of recognition of inflation on the spending side of the formula coupled with the increased costs due to inflation.
Additionally, we will reiterate again the opportunities for increased revenues from the changes in the tax structure proposed by Walz for taxing investment income through higher capital gains, proceeds from legalization of cannabis and legalized Sportsbook gambling.
Because this forecast release occurs after passage of the changes in current law, it will only affect future forecasts, but we expect the impact on this budget will be discussed during the press conference at 11:30 am.