ST. PAUL, MINN. – From the start of this most recent legislative session, the DFL controlled Minnesota Senate has made it a priority to pay back the millions owed to the state’s K-12 school system. Thursday, thanks to a progressive tax policy and a rebounding economy the school shift has been paid back in full.
This news comes on the heels of the Minnesota Management and Budget Office’s November budget forecast, which announced the state has a projected surplus of $825 million after the school repayment.
Senator Tom Saxhaug (DFL-Grand Rapids) has long championed the importance of investment in K-12 and higher education, and applauds the repayment and the strong budget forecast.
“We made it a priority to quickly and responsibly pay back what previous legislatures borrowed from our schools, and Thursday’s forecast confirms that is exactly what we accomplished,” Senator Saxhaug said.
He added, “This strong economic forecast shows that Minnesota is back in business with a lower unemployment rate and jobs numbers that are back to pre-recession levels. Just a year ago, the state was facing a $1 billion deficit, now we’ve paid back schools in full and our economy is poised for even greater growth; we’ve seen that a lot can happen in a year.”
MMB reports that stronger employment and income growth contributed to the forecast revenue growth. It also reported that Minnesota’s growth was due in large part to increased tax revenue, thanks to higher incomes and corporate tax estimates. This forecast shows how the honest budget passed by the DFL legislature has created the confidence and stability necessary for Minnesota’s strong economic growth.