Skip to main content
Publish date:

Minnesota's state budget has a projected $1.5 billion surplus

The Legislature and incoming Democratic governor Tim Walz will have some money to allocate.
Author:

Minnesota is forecasting a $1.554 billion budget surplus for the 2020-21 state biennial budget.

The figure was revealed by Minnesota Management and Budget in its 2018 November budget forecast, with a third of this money – $491 million – automatically being saved into budget reserves under state law.

The remaining amount of just over $1 billion will give incoming Governor Tim Walz more room to maneuver in his first state budget, for which he'll have to decide whether to allocate the surplus on spending, tax cuts, or a mixture of both.

Walz will have a slightly easier time passing budgets than Gov. Mark Dayton had in recent years, owing to the fact the Democrats won control of the Minnesota House in November's mid-terms.

The Republicans still control the Minnesota Senate, however they have a majority of just a single seat.

The $491 million allocated to the budget reserve, which is in place to mitigate the risk of a downturn in state finances, brings the total in the pot up to $2.075 billion.

The MMB however did offer a gloomier outlook for future years, predicting slower economic growth on the horizon that will continue into the 2022-23 biennium.

Sign up for our daily newsletters

This is due to a mixture of uncertainties, including the current trade tariff war between the U.S. and other major markets including China, as well as stock market volatility and taxpayers' response to the federal tax law changes passed last year, but which becomes more restrictive in late 2019.

Regarding the tariffs, the budget document notes that Minnesota grain and seed exports fell by 30 percent, driven by the retaliatory 25 percent tariffs imposed by China on soybeans.

The document adds: "Other industries likely to be impacted by retaliatory tariffs include pork by-products; motorcycle manufacturing; whey products; kidney beans and white pea beans; outboard motorboats, row boats, and canoes; fresh or chilled pork; bread and other baked items (including pizza); uncoated paper; ceramic articles; and soybeans."

You can read the budget forecast here.

Next Up

Cam Talbot / Minnesota Wild

Talbot leads Wild to 7th straight victory

The Wild opened a four-game road trip with a win in Edmonton.

Paige Bueckers

Paige Bueckers out 6-8 weeks with injury

The Hopkins native was hurt during Sunday's matchup with Notre Dame.

Anthony Barr

Vikings' defense could get reinforcements against Steelers

Several starters could return for a critical Thursday night matchup.

Mercer ATV accident fundraiser

High schooler in coma, fighting for his life after ATV crash

Family members found the teen on the ground and unresponsive.

Nolan Sprengeler - muskie record - nov 2021

Angler officially breaks 64-year-old state muskie record

The muskellunge he caught on Nov. 22 weighed a whopping 55 pounds, 14 ounces.

coronavirus, ICU, covid-19 hospital, doctor

4th teen COVID-19 death reported in MN is the 2nd in as many weeks

All four teenage COVID-19 deaths in the state have been reported in the past two months.

Anil Menon

Minnesota native named to NASA's new astronaut class

When he's done training, he could be sent to the space station or the moon.

broadway pizza interior facebook

Gallery: Original Broadway Pizza auctioning off everything

Get your hands on some classic Broadway signage, train-themed decor and more.

art shanty projects

Art Shanty Projects to return to Lake Harriet this winter

The festival has made some creative changes in response to the COVID-19 pandemic and climate change.

flickr - gov tim walz - mn senate dfl

After 'extraordinary' revenue growth, MN projects $7.7B surplus

But finance officials note there is still "significant risk" due to economic uncertainty.

Related

State of Minnesota is projecting a $1.3 billion budget surplus

Lawmakers will decide how to spend it in the next session.

Tim Walz

Minnesota's budget surplus grows, but uncertainty remains

Lawmakers have plans for the cash in what is an election year, but caution is being urged.

State Capitol.

Minnesota's budget outlook improves, now projecting $1.6B surplus

The state was projecting a $1.3 billion deficit in November.

Minnesota's budget surplus falls, but is still over $1 billion

It's down nearly half-a-billion from the November forecast.

Screen Shot 2019-03-29 at 10.54.48 AM

What's in the Minnesota Senate GOP's budget proposal?

The GOPers have proposed a smaller budget than Gov. Tim Walz and the House DFL.

What is in Gov. Tim Walz's first budget proposal?

It provides a huge boost to education funding,