Budget forecast: Projected surplus drops by almost $500 million, still tops $1 billion 

Expectations may need to be tempered by people and organizations seeking new or increased state spending in the 2020-21 biennium.

While the state’s $1.05 billion projected budget surplus for the 2020-21 biennium may sound like good news, that’s a $492 million decrease since November, Minnesota Management and Budget officials announced Thursday.

Commissioner Myron Frans called the 2019 February Budget and Economic Forecast “a cautionary tale” because while a positive balance is nice, state leaders must be cautious in how they proceed.

The projected surplus was $1.54 billion when the agency announced numbers three months ago.

Required by state law, the February forecast is one of two annual budget indicators released by the state after finishing a collaboration between agencies and economists who follow state and national trends. Legislators will use the forecast numbers to help shape policies for the remainder of the 2019 session, which must end by May 20.

The 2020-21 biennium begins July 1, 2019. Read more at Session Daily 

Session Daily

'No easy fix:' legislative reform subcommittee holds first meeting (7/10/2019 3:24:00 PM)
Governor signs special session budget bills into law (5/31/2019 11:52:53 AM)
After sunrise, the sun sets on 2019 special session (5/25/2019 7:09:00 AM)
House passes omnibus education bill during special session, includes $543 million funding boost (5/25/2019 6:50:00 AM)
Omnibus state government bill going to governor has $60 million base increase (5/25/2019 6:44:00 AM)
Public safety bill that 'scratched the surface' gets House, Senate approval and heads to governor (5/25/2019 4:33:00 AM)
Wage theft penalties among House-, Senate-approved omnibus jobs and energy bill (5/25/2019 3:58:00 AM)
The tax bill cometh - and the governor will need to act on it (5/25/2019 2:35:00 AM)
Environment funding bill now awaits action by the governor (5/25/2019 1:08:00 AM)
'Status quo' transportation bill clears House (5/25/2019 12:40:00 AM)
The last big bill is ready: omnibus health and human services legislation unveiled (5/24/2019 9:31:00 PM)

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