Minnesota's budget forecast improves to $1.65B – here's what that means

This is a $1.65B surplus – essentially how much extra money is left over and unused right now.
Author:
Updated:
Original:

Minnesota lawmakers will likely have $1.65 billion in extra funds to work with in the upcoming years.

The state put out its budget forecast Tuesday morning, projecting a surplus of $1.65 billion for lawmakers to compete over when planning the 2018-19 state budget. This figure is slightly higher than the $1.4 billion forecasters projected back in December. It includes a projected $743 million that hasn't been spent from the 2016-17 budget cycle, which ends in June.

Despite an improved economic outlook for Minnesota into the 2020-21 biennium, the Department of Minnesota Management and Budget says "significant risk" remains because of "federal policy unknowns."

You can read all the nitty gritty details of the budget forecast here.

What’s the budget forecast for?

Minnesota’s Legislature will use this updated forecast to determine what it can use the money on over the next two years, beginning in July. Lawmakers – and Gov. Mark Dayton – must approve a budget by June 30 to avoid a government shutdown.

Here's a look at what the budget could look like:

The Democrat Dayton released his $45.8 billion budget plan last month, which includes spending money on early childhood education, expanding the state's MinnesotaCare public health program, and technology upgrades. He'll have to update his budget to the new $1.65 billion forecast, though.

Democrats on Tuesday urged that it's not the time to shy away from making investments.

“With uncertainty at the federal level around funding, now is not the time to step back from the investments and progress we've made in recent years in Minnesota. Our state budget continues to see a surplus, giving policymakers the space to address immediate challenges, while building the opportunities of our future," Rep. Erin Murphy, a Democrat from St. Paul, said in a statement Tuesday. 

Republicans, who have the majority in both the state House and Senate, haven't released a budget plan yet, but they have commented on Dayton's plan and said they want to use the money to cut taxes and spending. House Taxes Committee Chair Rep. Greg Davids, a Republican from Preston, told MPR News that lawmakers have proposed about $6-$7 billion in tax relief already.

House Speaker Kurt Daudt, a Republican from Crown, said Tuesday Republicans will pass "significant tax relief" to give money back to Minnesotans, with House Majority Leader Joyce Peppin, R-Rogers, saying committee chairs will begin working on a budget in the coming weeks.

Next Up

storm, severe weather

'Particularly dangerous situation' issued by NWS as potential derecho nears

Storms could produce damaging winds, large hail and tornadoes.

Flickr - Minnesota state senate chamber - Matt Lewis

Calls for investigation after former DFL staffer details sexual harassment

Cynthia Callais provided her account to the Minnesota Reformer.

Motzko and Schuneman

Driver in Orono crash that killed Motzko, Schuneman is in custody

The 51-year-old reportedly turned himself into police Wednesday.

Miguel Sano

Twins smash 7 homers, still lose to Tigers

It was a wild afternoon at Target Field.

Pixabay - school - classroom

Decision on school mask mandates will be up to local districts

It will not come from the health or education departments, an official said Wednesday.

spices recall

McCormick recalling some spice mixes sold in Minnesota

The company issued the voluntary recall over possible salmonella risk.

the mayo clinic - edit

Mayo Clinic named No. 1 on 'Best Hospitals' list

It's the sixth year in a row the Rochester hospital has been named the best of the best.

36262 Ottertail Rd, Battle Lake, Minnesota - September 2009

Bystander on dock sees teen struggling in water, jumps in to save him

The teen kept going under the surface near a dam on Otter Tail Lake.

castaway club camp

Cluster of COVID-19 cases tied to camp in western Minnesota

Ten cases have been reported among staff, report states.

Screen Shot 2021-07-28 at 12.16.13 PM

Rodgers pummels Packers front office in viral press conference

"The rules are the same for most people, but every now and then there are some outliers."

Pexels - mother child mask covid

MDH urging that all wear face masks, 12+ get vaccinated for upcoming school year

State health officials revealed their COVID-19 recommendations for 2021-22.

sunfish 1

Gallery: Aspen-inspired estate on private lake is yours for $4.95M

Each bedroom has its own bathroom. And there are four laundry rooms.

Related

What the $1.4B budget forecast means for Minnesota

Now lawmakers will have to choose how they want to use this money. Which was a problem last year.

Here's where things stand with Minnesota's budget negotiations

It's Wednesday morning and still no budget has passed.

They're back: What Minnesota's lawmakers will try to get done this year

Let's see if lawmakers can agree on stuff they haven't been able to agree on for years.

Why is Minnesota now forecasting a budget deficit?

It's the first time since 2013 the state is projected to lose money.

What's in the Minnesota House DFL budget proposal?

The state is looking at a $1 billion surplus in the years ahead.