February economic forecast weakens since November
Earlier today, Minnesota Management and Budget (MMB) released the February economic forecast. While the state still has a budget surplus, the projected balance for the upcoming biennium is $1.052 billion, $492 million less than the November forecast projection of a $1.54 billion surplus.
According to state budget officials, there is “slower projected economic growth and lower observed collections compared to prior estimates.” State budget officials also noted that the “trend of slower growth continues into the planning horizon with projected spending growth outpacing forecast revenue growth into FY 2022-23.”
The February forecast is used by lawmakers and Governor Tim Walz to craft a two-year state budget. The governor submitted his budget recommendation last week based on the November forecast, recommending $51.6 million in new funding for Minnesota State. Lawmakers and the Governor have until May 20 to put together the 2020-2021 budget.
The complete details of the February forecast can be found on the MMB web site.
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