Today, Minnesota Management and Budget (MMB) released the February Economic Forecast, which showed a $1.9 billion budget surplus. The surplus is due to a multitude of factors, including higher revenues, lower spending and a general improvement in Minnesota’s economy. Minnesota’s unemployment rate is 3.6%, the 5th lowest in the country and lowest in Minnesota in 14 years. The report also shows a slight increase in wages for Minnesotans.
“The recently released budget forecast indicating a surplus of nearly $1.9 billion is good news for Minnesota. It is satisfying to have been part of the solution in the last legislative biennium where we focused on targeting specific investments,” said Rep. Jeanne Poppe (DFL-Austin). These strategies puts Minnesota in the forefront of states recovering from the economic downturn and budget deficits we faced each year. Our sound fiscal management took care of the debt owed to schools and helped improve funding for our cities. We were able to invest in all day kindergarten, freeze college tuition for two years, and provide property tax relief for farmers.”
“The strong economic forecast allows us to continue to make key investments in the middle class and hopefully will continue to reduce the burden to college students and their families, improve job skills training and workforce development, and continue the effort to "raise all boats" so everyone can feel the benefit of our improving economy. The forecast gives us a great opportunity to continue our investment strategies in agriculture and supporting the needs of greater Minnesota. Continuing to keep our ag-economy and ag-businesses growing continues to be a priority of mine. I look forward to working with my colleagues to enact these investments.”
MMB said today that Minnesota’s long term budget outlook remains strong with a structurally balanced budget into 2019. The DFL-led legislature passed a balanced budget in 2013 for the first time in nearly a decade, paving the way for a stable budget now and into the future.