ST. PAUL, Minn. (AP) — Minnesota lawmakers are being told that the state’s economy is on the upswing judging by closely watched measures of job gains and tax collections.
State budget officials testified Thursday to the Legislative Commission on Planning and Fiscal Policy that tax collections have far surpassed expectations and Minnesota is close to regaining the jobs it lost during the recession.
State government still owes schools hundreds of millions of dollars in deferred payments to address. But the excess tax revenue is dedicated by law to repaying those IOUs.
Meanwhile, party leaders are differing over the effect of a new state budget on property taxes. Republicans say they’re headed up, but Democrats attribute it to new construction and say the burden on existing property owners is easing.