SAINT PAUL, MN (KMHL) — Minnesota’s projected budget surplus has grown to $17.6 billion, according to Minnesota Management and Budget. The announcement came this morning, as strong tax collections and lower-than-projected spending are key reasons the projected surplus has risen. Economic headwinds are expected to lower the expected growth; however, the large initial surplus and substantial net revenues have added to the projected total, MMB said.
The $17.6 billion forecast sets the table for how much DFL lawmakers, and the governor can spend on the state’s upcoming two-year budget, along with other priorities including childcare programs, education, and paid family leave programs. More than $7 billion was left unspent when a gridlocked legislature closed out the 2022 session.
Minnesota Management and Budget Commissioner Jim Schowalter said, “We’re starting from an incredibly strong place.”
Schowalter said the state was well situated in case of a downturn, even as national and international economic forecasts project a recession on the horizon.