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.
“Fully paying back our schools is a victory for Minnesota students,” said State Representative Mary Sawatzky (DFL – Willmar). “Paying back our schools ends the gimmicks and games of past budgets and now instead of cleaning up messes, we can focus on building a brighter future for our children and all Minnesotans.”
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.
The new state budget passed in May included historic investments in job creation, all-day kindergarten, a college tuition freeze, and tax fairness.
The next economic forecast will be in late February 2014. The 2014 Legislative Session begins on February 25.
“Our economy has continued to grow faster than the rest of the nation and nearly every other state, and that is a testament to our highly-productive workforce and great businesses,” added Rep. Sawatzky. “We’re continuing to make progress with an honestly balanced budget and investments in middle-class priorities, but we know we have more work to do for Minnesota families. We will continue to monitor our economy and the next forecast as we move forward and work to position our state for long-term success.”
Rep. Sawatzky encourages constituents to contact her with any questions, comments, concerns, or ideas. Rep. Sawatzky can be reached by phone at 651-296-6206 or by email at rep.mary.sawatzky@house.mn. Constituents can also visit Rep. Sawatzky’s AreaVoices blog, legislative page and sign up for email updates.