Today, the Office of Management and Budget released the November Revenue Forecast. The amount being a surplus of $7.7 billion. The Minnesota economy, jobs numbers and unemployment rates all surpass the federal figures. The outlook is clear and bright and into the far-out years. This is the preliminary information coming prior to the legislative session which will base its actions on the February Forecast, which should glow evermore rosy.
We expect because its an election year Republicans will start their kneejerk calls for tax cuts and the DFL will bolster existing programs, and maybe call for new spending, but that will be in a Supplement Budget. Since even years are Bonding Bill Sessions, a larger than normal Capital Investment Bill is warranted and justified. We truly are in a position to fix the roof when the sun is shining. As we have said before we think there should be a deferred Maintenance Bonding Bill. Any Republican that says deficit spending, or state debt is a curtailing factor should be turned from office, just because of their limited intellectual capacity. This surplus when combined with the federal monies from the infrastructure bill will go a long way and we suggest Governor Tim Walz (DFL-MN) and the DFL House Majority should make sure their spreadsheets and rhetoric consist of a column for the federal contribution and the state match because we will be able to have a two-to-one match, state to federal. Giving the Biden Administration a public pat on the back at every turn is a way to help push up poll numbers for Democrats statewide.
A link to the American Rescue Plan is on the MMB website showing its value here in Minnesota.
The report does carry a dosage of caution and expresses some factors for consideration.
- Path of pandemic
- Labor force participation
- Supply chain issues
- Global growth
- 19 months until end of FY 2022-23
We have included links to the presentation and report for you to view.