Budget surplus should benefit working families
Minnesota releases forecast
Minnesota’s state budget surplus is expected to be $1.54 billion for the upcoming fiscal year 2020-21 biennium.
Gov.-elect Tim Walz and state lawmakers will use the Minnesota Management and Budget’s (MMB) budget and economic forecast to make spending and tax decisions during the legislative session which begins Jan. 8.
Today’s budget forecast is the last one presented during Gov. Mark Dayton’s time in office and is a sharp contrast to the $6.2 billion deficit he faced when he first took office in 2011.
“Gov. Dayton deserves huge credit for taking Minnesota’s budget out of the red and leading Minnesota to be recognized as one of the best-run states, and top places to do business and raise families,” MAPE President Chet Jorgenson said.
“Today’s budget forecast will help Gov.-elect Tim Walz to keep his campaign promises to improve the lives of our state’s workers and their families. MAPE joined with his 'One Minnesota' campaign to fight for better-funded schools, affordable health care, and improved roads and bridges so our state could work for all Minnesotans,” he added.
Gov.-elect Walz must release his initial two-year FY 1920-21 budget proposal in Feb.
State law requires that $491 million of the surplus be added to the state’s budget reserve, which now totals more than $2 billion.
MMB officials report that “Minnesota’s budget and economic outlook remains sound, despite slower growth through the budget horizon.” They are projecting slower economic growth to continue into FY 2022-23, resulting in a slowdown in forecast revenue growth. This leaves forecast revenues exceeding base expenditure estimates by only $456 million for that biennium.