Gov. Mark Dayton's revised budget proposal suggests putting about half of the state's projected $1.2 billion surplus toward tax cuts with most of the remainder going into a reserve fund.
The Associated Press reports Dayton's supplemental budget would extend $300 million worth of federal deductions and exceptions to the state level. It would also repeal $230 million worth of business taxes the governor signed into law last year.
Dayton's announcement says the total tax cuts in his plan come to $616 million.
The proposal would also put $455 million into the state's reserve fund. Forum News Service reports that would be the first increase in the rainy-day fund since 2001. Dayton suggests putting the remaining $162 million toward additional spending at the Legislature's discretion.
As MinnPost reports, Dayton calls his revisions a course correction in light of the rosy economic forecast issued by the state budget office at the end of February. MinnPost says Dayton hopes the Legislature can get a tax cut package onto his desk by the middle of this month. One of the business taxes enacted last year is scheduled to take effect on April 1.
The Associated Press says a tax cut package is indeed moving with uncharacteristic speed through the House, where all members are up for re-election this fall. The cuts are moving more sluggishly through the state Senate.