The Minnesota Management and Budget office’s new economic forecast released Friday is a swing in the opposite direction of the forecast from December. The new forecast shows a $1.6 billion surplus, a drastic change from the $1.3 billion deficit forecast two months ago. Governor Tim Walz released the following statement on the new forecast –
Today, Minnesota Management and Budget released the February economic forecast for the State of Minnesota. Governor Tim Walz released the following statement after the announcement:
“This budget forecast is good news for Minnesota. It proves that the measures we took during the pandemic have both saved lives and protected the economy.”
“But state projections aren’t the same as household budgets. They don’t reflect the hardship that many Minnesotans have endured over the past 12 months. As we come out of COVID-19, we can’t forget the sacrifices so many of our workers and small businesses have taken to protect their communities. They’ve been heroes throughout the past year, sacrificing their own bottom line for their neighbors. And they saved lives. That’s why my budget focuses on leveling the playing field to support working families and small businesses.”
There is no longer an anticipated shortfall for FY 2022-23 and Minnesota now projects a positive balance of $1.6 billion because of a higher revenue forecast, lower state spending, and an increased surplus for the current fiscal year.
