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Forecast Demonstrates Surplus in State Budget

ST. PAUL, Minn. – (Dec. 3, 2015) – Twice each year the Minnesota Management and Budget office prepares the Budget and Economic Forecast as required by Minnesota law.

The November forecast is used to set the starting point for the budget, and is the basis for the Governor’s recommendations.

RELATED LINKS:

  • Forecast Highlights
  • Complete Forecast
The forecast released this week shows a budget surplus of nearly $2 billion. After a required transfer of funds of the state’s reserve and environmental funds lawmakers will be left with a projected $1.2 billion surplus as they head back to St. Paul next year.

The surplus is the result of both a decrease in expected spending and an increase in sales tax collection among other factors.

The forecast also reported that the pace of hiring has slowed in Minnesota and that economic growth nationwide is expected be lower than previously projected.

The report concluded by noting that the long term budget outlook in Minnesota remains healthy with revenues outpacing spending through 2019.

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