New budget forecast projects $1.3 billion state surplus

The first of two economic forecasts lawmakers will rely upon as they make budgeting decisions in 2020 offered upbeat news on Thursday, predicting Minnesota will have a budget surplus of $1.3 billion for the 2020-21 biennium.

Officials with Minnesota Management and Budget released the 2019 November Budget and Economic Forecast, citing an improved revenue forecast and small spending decrease as reasons for the improved economic outlook.

Commissioner Myron Frans said the forecast includes a structural balance for the next four years, when revenues are expected to exceed spending. He said it reflects economic, revenue, spending and legislative changes that have taken place over the last several months.

The forecast provides an update on the state’s financial health by looking at a variety of economic factors and trends, including spending and predicted revenues. Along with a second forecast that MMB is to release at the end of February, this data is used to inform the budgeting and policy decisions lawmakers will need to make during the 2020 legislative session, which is scheduled to begin Feb. 11.