State budget officials released detailed revisions to Gov. Mark Dayton‘s biennial budget proposal.
In a letter to legislative leaders, Minnesota Management & Budget Commissioner Jim Schowalter outlined proposed changes to the governor’s original budget plan. The revisions reflect updated revenue and spending projections from the February Economic Forecast.
The forecast, released Feb. 28 by MMB, showed the state’s biennial budget deficit shrank from $6.19 billion to $5.03 billion. Dayton previously stated that he would alter his plan to accommodate the new figure.
Major changes, as outlined in the official MMB documents, include:
- eliminating a proposed 3 percent surtax on incomes over $500,000;
- reinstating $170.3 million in proposed health and human services spending; and
- adding a proposal to boost the research and development tax credit by $21.8 million.
In total, Dayton’s revised budget proposal would spend $37.33 billion from the General Fund – an increase of $235 million over his original plan. House Republicans are proposing to spend just $34.26 billion.
Under current law, forecasted base spending in fiscal years 2012 and 2013 is set at $39.02 billion. The state is expected to receive $33.33 billion in revenue during that time. A balance of $663 million is projected for the end of the current biennium on June 30.