ST. PAUL, MN – This week, Minnesota Management and Budget announced a projected budget surplus of $1.08 billion for the current biennium (fiscal years 2014-15).
The first $246 million of the surplus will be used to pay back the remaining school shift in full thanks to an accelerated repayment plan in the new state budget, leaving a balance of $825 million.
“When I spoke with voters at their doors and over the phone during the 2012 campaign, Minnesotans told me they were tired of the games and gimmicks that left us with perpetual budget deficits over the past decade,” said State Representative Jason Isaacson (DFL – Shoreview). “We promised to pay back the school shift and put our state on sound fiscal footing by balancing the budget in a way that was honest and fair. That’s exactly what we did, and as a result, Minnesota’s economy is better off than it was a year ago.”
"The budget forecast contains many positive signs of Minnesota's improving economy, but most importantly, all of the $2.8 billion that previous legislatures borrowed from schools has been repaid- in full," said State Representative Barb Yarusso (DFL – Shoreview). "From here, we will continue our work to keep our state's budget fair, balanced, and gimmick-free, and keep Minnesota the best place to do live and work in our region."
The new budget forecast comes on the heels of a recent report from the Minnesota Department of Employment and Economic Development (DEED) showing that the state’s unemployment rate fell to 4.8 percent in October, the lowest it’s been since December 2007 and well below the national rate of 7.0 percent. Minnesota employers have added nearly 50,000 jobs over the past year, a growth rate of 1.8 percent compared to the national rate of 1.7 percent.
The next budget forecast will be released in February 2014. If the projected surplus holds, Isaacson said his top priority is to repeal a new tax on warehouse services scheduled to go into effect next year on April 1.
“I’ve authored a bill that would repeal that tax,” said Isaacson. “I want to make sure we eliminate the financial burden it would put on Minnesota businesses.”
The 2014 Legislative Session kicks off on February 25, 2014.