ST. PAUL, Minn. – (Mar. 2, 2017) – This week the February budget forecast for the State of Minnesota was released.
Since the November forecast Minnesota’s budget and economic outlook has improved, but significant risk remains. Increased forecast revenue projections are partially offset by increased spending estimates.
The current biennium is now projected to end with a surplus of $743 million. General fund revenue growth continues into fiscal year 2018-19. As a result, a $1.65 billion surplus is projected to be available for the upcoming FY 2018-19 biennial budget. That represents a $250 million increase from the last forecast.
The positive budget outlook continues into the FY 2020-21 biennium, however federal policy unknowns create significant risk for this forecast.
Governor Dayton and the republican controlled legislature will need to find a compromise for how to use the surplus. A portion of the surplus will automatically be put into the state’s rainy day fund to help protect against any future budget deficits.
