Talking Points: Will taxpayers be reimbursed amid a $17.5 billion budget surplus
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."
Esme Murphy spoke with Jim Schowalter, Minnesota Management and Budget Commissioner, about the pandemic's impact on the surplus.
Meanwhile Republicans point to the surplus as a sign Minnesota is overtaxing its residents. Murphy spoke with Senate Minority Leader Mark Johnson about the legislative gridlock and returning that money to your pocket.
On Wednesday, Republican Senator Jeremy Miller proposed automatic rebate checks in the event of a budget surplus.
WCCO's political analysts Abou Amara, a Democrat, and Amy Koch, a Republican, weighed in on the budget surplus and odds of taxpayers getting their money back.
With a DFL trifecta at the capitol, the odds of some sort of plan for using up much of the surplus has a good chance of passing. We will keep you posted on that debate as it occurs in the legislature.
Talking Points airs every Wednesday and Thursday at 6:30 p.m. and 9:30 p.m., live on CBS News Minnesota.