Five takeaways from the state's $1.3 billion budget surplus

December 6, 2019 at 4:15AM
6287760 bytes; 3600 x 2396; Gov. Tim Walz, clockwise from top right, spoke with Myron Frans, commissioner of Minnesota Managemen Gov. Tim Walz, clockwise from top right, spoke with Myron Frans, commissioner of Minnesota Management of Budget, Senate Majority Leader Paul Gazelka and Republican State Senator Julie Rosen after the Minnesota state budget and economic forecast.
6287760 bytes; 3600 x 2396; Gov. Tim Walz, clockwise from top right, spoke with Myron Frans, commissioner of Minnesota Managemen Gov. Tim Walz, clockwise from top right, spoke with Myron Frans, commissioner of Minnesota Management of Budget, Senate Majority Leader Paul Gazelka and Republican State Senator Julie Rosen after the Minnesota state budget and economic forecast. (Vince Tuss/The Minnesota Star Tribune)

1. The extra cash will turbo­charge the 2020 legislative debate between DFL spending priorities and GOP calls for tax cuts.

2. It could fire up Gov. Tim Walz's push for transportation funding, which was stymied last spring by the failure of his proposed 20-cent hike in the state's fuel tax.

3. The $1.3 billion is what's left after $284 million of the surplus was shifted to the state's budget reserve, which is now full.

4. Watch for Republicans to argue that the surplus is the fruit of President Donald Trump's federal tax cuts.

5. The $1.3 billion estimate could rise or fall depending on federal policy changes, trade agreements, inflation, health care expenses and other factors outside lawmakers' control.

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