Minnesota Management and Budget (MMB) released the November budget and economic forecast today, which projects a $1.54 billion surplus available for the next two-year budget cycle (Fiscal Year 2020-21). The surplus is the result of $720 million rolled over from the current biennium, along with an $824 million surplus expected in the next biennium. In addition to the available surplus is $350 million that is statutorily dedicated to the state’s rainy day fund, which will now top $2 billion for the first time. The economic forecast does anticipate economic growth to slow and a budget surplus in FY2022-23 of $456 million.
In his response to the budget forecast, Governor-elect Tim Walz prioritized education, health care and investments in communities. DFL legislators, led by House Speaker-designate Melissa Hortman, urged caution and said because inflation is not fully accounted for in the forecast, the coming budget surplus is closer to $350 million. Continue reading