DFL, Republican lawmakers likely to diverge on Minnesota budget surplus

There may be some different views emerging in St. Paul on what to do with an anticipated large state budget surplus.

The budget forecasts that were just announced peg the two-year number at $1.5 billion, which means just one thing to Greg Davids, the Republican state rep. from Preston.

“We’ve overcharged folks and I think they deserve to keep their own money,” he said.

Governor-elect Tim Walz has given few specifics on his plans for the large surplus but credited current DFL Gov. Mark Dayton for fiscally responsible actions in creating the surplus.

Walz has did mentioned his priorities of education and health care during comments on the surplus.

Davids, however, says lawmakers should do what they did two years ago facing a surplus: cut taxes.

“We didn’t just go spend it all,” Davids said. “We did give some back. And then people invest it and spend it. And we see an affect where we actually have more by taxing less.”

Davids doesn’t think Walz will have the same view on that.

“I think he’ll want to spend it all,” Davids said. “And that’s not going to happen (with a divided government). We’ll have to sit down and figure out what the priorities are and put a good bill together.”

Some have cautioned against tax cuts due to expected slower economic growth in the near future.