MN Budget Forecast Shows $7.7 Billion Surplus
St. Paul, MN — The trend of good news of the on economic front continues this week following the release of the November budget forecast. The Minnesota budget and economic outlook is significantly improved in all years of the budget planning horizon. A general fund budget surplus of $7.746 billion is now projected for the FY 2022-23 biennium. Strong growth in income, consumer spending and corporate profits drove extraordinary revenue growth in FY 2021, and higher tax receipts to date in FY 2022 combine with an improved outlook for income, consumer spending and corporate profits to raise the revenue forecast for the current biennium. Estimates for state spending are also down slightly in the current biennium.
House Majority Leader Ryan Winkler says it’s hardworking Minnesotans that is driving this economic forecast.
Winkler notes that given this economic forecast, the focus for Democrats this upcoming session will be on improving the lives of working Minnesotans.
For District 4B Representative Paul Marquart, who chairs the Tax Committee, he believes that a portion of the surplus should go towards paying back the Federal government for the unemployment insurance benefits that Minnesotans received during the pandemic.
The improved budget forecast triggers a statutory allocation to the budget reserve, leaving the reserve balance at $2.656 billion. While economic uncertainty and the pandemic pose significant risk to the forecast, the improved outlook carries into FY 2024-25 planning estimates.