Associated Press

ST. PAUL — A near-doubling of Minnesota’s projected budget surplus to $1.87 billion had Sen. Dan Sparks and Rep. Jeanne Poppe, both DFL-Austin, touting the policies of the last few years and calling for more improvements in higher education, jobs training, workforce development and agriculture.

“The strong economic forecast allows us to continue to make key investments in the middle class and hopefully will continue to reduce the burden to college students and their families, improve job skills training and workforce development, and continue the effort to “raise all boats” so everyone can feel the benefit of our improving economy,” Poppe said in a press release. “The forecast gives us a great opportunity to continue our investment strategies in agriculture and supporting the needs of greater Minnesota.”

With the surplus, Sparks said several initiatives designed to drive growth in Greater Minnesota and improve the lives of hardworking Minnesotans now have a better chance of passing.

“The state’s investments in education, jobs and economic development projects across the state are clearly working. Now is the time for focused attention on jobs and workforce housing projects in rural Minnesota,” Sparks said in a press release. “Our focus needs to be on continued stability and addressing areas of the state that need support for new development and growth.”

But the partisan lines were drawn Friday after the latest budget forecast pushed the state’s projected surplus for 2016-17 to $1.87 billion, well above the $1 billion projected last December.

Democratic Gov. Mark Dayton said lawmakers shouldn’t assume the upward trend will last indefinitely and argued the state must position itself when times are good instead of deeply cutting taxes.

“I’d rather see us invest the money from our collective good fortune in a collective better future for all of us and for our kids and grandkids,” Dayton said.

To that end, he wants more than $150 million devoted to public colleges and student financial aid, both to hold down to undergraduate tuition and foster medical research. He said he also favors funding universal, state-paid preschool programs for four-year-olds and expanded child-protection efforts, and that nursing homes can also expect a lift. He will release a revised budget early in March.

House Speaker Kurt Daudt said Friday Republicans plan to give at least $900 million of the surplus back to Minnesotans in some form, and “probably a lot more than that.”

“I guess Governor Dayton and the Democrats in the Senate are going have to make the argument to Minnesotans that Minnesotans don’t deserve their money back,” Daudt said, mentioning possible tax exemptions for veterans and Social Security recipients as well as broader income-tax reductions.

Daudt mentioned exempting Social Security income and veterans benefits from tax as examples of what they might do. He also said nursing homes and schools would be high on the House priority list, as would road construction.

Republicans forcefully called on Dayton and Democrats to ditch a transportation plan that seeks to impose a 6.5 percent fuel sales tax and other fees, describing it as illogical to raise such taxes when the lower per-pump costs are helping drive the state’s economic gains.

Deputy Senate Majority Leader Jeffrey Hayden said the proposal should remain on the table to provide a robust, dependable and dedicated stream of money for roadwork.

The surplus is substantially more than the $1 billion estimated in December. The forecast revenue would be enough to support a roughly $42.5 billion two-year budget.

It’s the latest in a string of strong economic reports for Minnesota, where the unemployment rate is well below 4 percent, and income and sales tax collections have steadily picked up steam. The boost was fed partly by faster wage growth and a run of low fuel costs, which left more money in household budgets. A stronger U.S. dollar also helped make imported goods cheaper to buy and Minnesota’s exports more lucrative, according to the report.

Minnesota has also retired its IOUs and stashed away another $1.3 billion into rainy-day reserves.

“Over the last few years we have righted the ship,” said state budget commissioner Myron Frans, who added notes of caution about potential inflation and global economic worries knocking things off track.

Groups lobbying for money for particular programs pounced on the positive news. A collection of Greater Minnesota cities renewed a pitch for spending on broadband Internet expansions and job-training programs. The National Federation of Independent Businesses said the state could now afford to give small businesses tax relief. And a coalition of groups pushing a 5 percent reimbursement rate increase for long-term caregivers said the improved budget situation should elevate their request, which would affect 90,000 people.

“We simply must have the resources to pay our caregivers a good wage and assure quality care,” campaign spokesman Bruce Nelson said.