To Fill The Minnesota State Coffers

 

The purpose of this bill is to make Minnesota more money.

 

We would be reallocating 0.1% of the state income tax to the new Minnesota Investment Fund, which will be used to invest

in the stock market to fill the coffers of the State of Minnesota. The estimated Minnesota State Individual Income Tax

for the 26-27 fiscal year is 33 billion dollars, meaning that the amount that is being reallocated for this bill is 33

million dollars. On average, the stock market’s value increases by 8% annually, which increases this fund’s value the

same amount. This money would compound in the account, with 2% every year being transferred to the Minnesota State

Surplus.

Why do we need this? Because the State of Minnesota could always use more money. More money every year is more that can

be used to fund things like an extra voting station, or museums. In times of a budget deficit, this could be used to

fill the hole that’s left there, and prevent things from losing anticipated funding.

This bill contains significant risk, however. That is why the percentage of the budget taken out is so small. In the

unlikely event that the value of the fund goes down significantly, we can still live without the money in the fund. In

addition, when the market is down, everything is cheaper. By continuing to put money into the account, we will be ready

to capitalize when the market goes back up. Eventually, the money will flow back in.

 

Minnesota Investment Fund - This is a fund that will be established by this bill, whose goal is to generate profits for

the State of Minnesota via investing in the stock market.

Stock market - A trading network that connects investors looking to buy and sell stocks.

Minnesota State Individual Income Tax - A tax on the income of everyone who earns money in the State of Minnesota.

Fiscal year - A year determined for taxing or accounting purposes.

Minnesota State Surplus - Extra money that the Minnesota Department of Management and Budget did not expect to have, and

is willing to use for other things.

Minnesota Department of Management and Budget - The department in the State of Minnesota that makes sure that the money

allocated by the legislature gets to where it needs to go.

 

 

None required.

 

None required as this is an internally run state program.

 

This bill will go into effect on July 1st, 2026.