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Mon Dec 7, 2020, 12:45 PM

Minnesota's budget forecast projects $641 million surplus

Minnesota’s economist released the official November forecast of state revenue and spending on Tuesday, and it offered better news for a governor and state Legislature seeking ways to help businesses and individuals hurt by a second round of pandemic-related closures.

What had been a $2.42 billion deficit when Minnesota Management and Budget, the agency that oversees the state’s finances, last took a look at the economic impacts of COVID-19 has turned into a $641 million surplus. That’s on a base two-year budget of $48.4 billion.

“Minnesota’s economic and budget outlook have improved since May, when we released a budget projection just as the COVID-19 pandemic was taking hold,” MMB reported Tuesday. “With this forecast, higher general fund revenues and lower expected spending result in a projected surplus of $641 million for the fiscal years 2020-21 biennium. The improved budget outlook continues into fiscal years 2022-23, but a $1.273 billion budgetary shortfall remains for that biennium.”

That look into the two-year budget that begins July 1, 2021 is a vast improvement over the summertime-estimate of a $4.7 billion deficit. And it is well below the state’s current rainy day savings account of $2.36 billion.

Read more: https://www.minnpost.com/state-government/2020/12/minnesotas-budget-forecast-projects-641-million-surplus/

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Reply Minnesota's budget forecast projects $641 million surplus (Original post)
TexasTowelie Dec 2020 OP
ProudMNDemocrat Dec 2020 #1

Response to TexasTowelie (Original post)

Mon Dec 7, 2020, 12:49 PM

1. Any surplus is a good thing.

Thank God Tim Walz did not give in to Minnesota Republicans to return much of that surplus back to taxpayers in 2019. It is because of Minnesota's higher taxes, we are able to afford the nicer things, not suffer like states with LOW taxes, and maintain sensible spending on services that are needed.

Despite it all, Minnesota ranks in the Top 5 BEST places to live and do business in. Wonder why?

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