Minnesota's budget forecast projects $641 million surplus

[TexasTowelie]

Minnesota’s economist released the official November forecast of state revenue and spending on Tuesday, and it offered better news for a governor and state Legislature seeking ways to help businesses and individuals hurt by a second round of pandemic-related closures.

What had been a $2.42 billion deficit when Minnesota Management and Budget, the agency that oversees the state’s finances, last took a look at the economic impacts of COVID-19 has turned into a $641 million surplus. That’s on a base two-year budget of $48.4 billion.

“Minnesota’s economic and budget outlook have improved since May, when we released a budget projection just as the COVID-19 pandemic was taking hold,” MMB reported Tuesday. “With this forecast, higher general fund revenues and lower expected spending result in a projected surplus of $641 million for the fiscal years 2020-21 biennium. The improved budget outlook continues into fiscal years 2022-23, but a $1.273 billion budgetary shortfall remains for that biennium.”

That look into the two-year budget that begins July 1, 2021 is a vast improvement over the summertime-estimate of a $4.7 billion deficit. And it is well below the state’s current rainy day savings account of $2.36 billion.

Read more: https://www.minnpost.com/state-government/2020/12/minnesotas-budget-forecast-projects-641-million-surplus/