On December 5th, Minnesota Management and Budget officials released an official state budget forecast. State Representative David Dill (DFL-Crane Lake) issued the following news statement:
“The recently released budget forecast reveals a $1.1 billion shortfall for the up and coming 2014-15 budget years beginning July, 1 2013. A surplus of $1.3 billion now exists in the current budget year ending June 30, 2012. Fortunately for school districts any surplus available this year and in future years is required by law, to repay unpaid portions of what was borrowed from K-12 public schools last session to make ends meet. While the short term news is good for schools, even after the $1.3 million repayment the state still owes schools a balance of $1.1 billion to be paid with any future surpluses.
The forecast confirms that cost savings and increased economic activity above amounts forcasted have resulted in a surplus in the present budget years. That said there still needs to be an honest conversation by Minnesotans, looking ahead on how we must deal directly with the state’s continuous deficits and hopefully conclude that a balanced and fair approach to expenditures and taxation can be reached. There will always be those who live on the fringe and claim foul, but time is of the essence and cool heads and solid decision making will lead to a better Minnesota and avoid constant fiscal crisis.
Office of Management and Budget warned that if the fiscal crisis in Washington is not resolved, Minnesota’s economy will be hit hard with the state’s unemployment figure estimated to rise to 7.1%. At the same time that Minnesota does its housekeeping; let’s hope that those in Washington can have that same honest conversations as we will have in Minnesota.”
A February, 2013 Minnesota Management and Budget revenue forecast will used by the Legislature to build the 2014-15 state budget.