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THE STATE EXPECTS $329 MILLION SURPLUS

ST. PAUL, Minn. – (March 1, 2018) – The State of Minnesota received some good news this week in the amount of half a billion dollars. Last November, the Minnesota Office of Management and Budget projected a $188 million deficit. This week the updated forecast was released and now shows a $329 million surplus.

One of the big reasons for this turnaround is the federal re-authorization of the Children’s Health Insurance Program, better known as CHIP. Additionally, this forecast reflects increased U.S economic growth arising in part from short term stimulus from federal tax law changes. The positive budget outlook continues into the next two year budget cycle, which starts in 2020.

Overall, economic growth is projected to slow down after the short term impact of the recent federal tax legislation runs its course. Also included in the budget and economic forecast was the news that Minnesota’s unemployment rate has fallen to its lowest rate in 17 years. It has dropped so low that there are slightly more job openings than unemployed job seekers.

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