ST. PAUL – Today the Office of Minnesota Management and Budget announced a forecast balance of $1.65 billion for the FY 2018-19 biennium up from a $1.4 billion forecast in November. State Rep. Clark Johnson (DFL-North Mankato) said the February forecast shows that Minnesota’s budget is stable, but the future is uncertain with so many federal changes.
“The surplus is good news,” said Rep. Johnson. “Now we must invest in what makes Minnesota such a great place to live, strong public schools, quality higher education and filling critical holes created by past deficits, including staffing at the Minnesota Security Hospital.”
The forecast again shows Minnesota with low unemployment as jobs continue to be added at a consistent rate. Businesses are growing and the state’s housing market remains strong as well. State budget officials pointed to these indicators highlighting the state economic picture as positive but highlighted “significant risks” to the long-term budget outlook due to uncertainties at the federal level.
“After a decade of rocky forecasts Minnesota’s budget turned around in 2013. But with so many questions with the new presidency, we need to continue to focus on a sensible budgeting. Adding to our rainy day fund may not be a popular opinion in St. Paul, but preparing for uncertainty is always a prudent course of action,” said Rep. Johnson.
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