$1.65 billion surplus announced for Minnesota’s state budget
This morning the Office of Management and Budget released the state’s February budget forecast, which projects Minnesota’s state budget to have a $1.65 billion surplus for fiscal year 2018-19 with the current biennium projected to end with a balance of $743 million.
The $1.65 billion surplus is up from the last economic forecast in November, which showed a projected $1.4 billion budget surplus. This recent forecast is an increase of about $250 million over the previous November forecast. .
The positive economic outlook continues into 2020 and 2021, but state budget officials warned of unknown federal policy changes that could put the forecast at risk.
Governor Dayton submitted a two-year $46 million budget proposal earlier this month based on the November forecast figures and may make some adjustments to that based on the new forecast.
State legislators will use this number to begin their constitutional obligation to craft and balance the state’s two-year budget this legislative session.
In the coming weeks, the House Ways and Means Committee and Senate Finance Committee will examine budget proposals from the various finance committees in the House and Senate.
Friday, March 31 marks the third deadline in which the finance committees must act favorably on major appropriation and finance bills.
Further details on the budget will be announced later today, followed by reactions from Governor Dayton and legislative leaders.