St. Paul, Minnesota — Today Minnesota Management and Budget announced that the budget forecast shows a projected budget surplus of $1.08 billion for fiscal years 2014-15. The first $246 million of the surplus will be used to complete repayment of the K-12 school property tax recognition shift, meaning all IOUs to Minnesota schools have been paid back. After paying back these shifts, the balance is $825 million. State spending was down by $250 million.
“This is great news for Minnesota; we have kept our promise to Minnesotans and fully paid back our schools after years of IOUs that hurt our students,” said State Representative John Ward (DFL – Baxter). “Minnesota’s economy is growing and we have an honestly balanced budget for the first time in a decade. When you honestly balance the budget and invest in middle-class priorities like education, job creation, and property tax relief, these are the results.”
Minnesota’s unemployment rate is down to 4.8 percent and in August, the state finished recovering all the jobs lost during the recession. During the first three quarters of 2013, businesses announced 112 expansion projects statewide. Those expansion projects will create an estimated 5,600 new jobs in Minnesota over the next two years. Minnesota was recently ranked eighth in the “Forbes 2013 List of the Best States for Business,” and had, according to the U.S. Department of Labor, the fifth-fastest growing state economy in the nation last year.
“This strong economic growth is a testament to our productive workforce and excellent businesses,” said State Representative Joe Radinovich (DFL – Crosby). “Thanks to a strong economy and a responsibly balanced budget, we’re turning the page on a decade of gimmicks and deficits, and making progress for the people of Minnesota.”
Today’s progress builds on the momentum started with the passage of the budget this session. The legislature made historic investments in jobs, all day kindergarten, higher education, and passed a fair and honest budget.
The next economic forecast will be in late February 2014. The 2014 Legislative Session begins on February 25.
“We are making progress, but there is more work to do grow our economy and put our state in the best position for lasting success,” said Rep. Ward. “Now is not the time for a victory lap. We need to monitor our economy and evaluate where things stand when we receive our next economic forecast. It’s my hope that our strong economy and budget will hold and we will be able to look at new ways to help strengthen our economy.”
“We accomplished a lot of great things for the people of Minnesota last session — all-day K, college tuition freeze, and property tax relief among them — and I look forward to continuing that great work next session,” concluded Rep. Radinovich. “We’re moving forward, but we have more work to do for Minnesota’s middle-class. Let’s keep making progress.”
Reps. Ward and Radinovich encourage constituents to contact them with any questions, comments, concerns, or ideas on any legislative topic. Rep. Ward can be reached by phone at 651-296-4333 or by email at rep.john.ward@house.mn. Rep. Radinovich can be reach by phone at 651-296-2365 or email at rep.joe.radinovich@house.mn.