ST. PAUL – The Minnesota state budget forecast estimating a $2.17 billion surplus for the 2008-09 fiscal year is the result of responsible fiscal management, said State Rep. Bud Nornes (R-Fergus Falls).
“We’re finally experiencing the results of our fiscal responsibility,” Nornes said. “The surplus was created from spending cuts and from no tax increases. This is a sign the state’s economy is moving forward.”
Minnesota recently faced a $4.5 billion deficit, so the Legislature enacted the cuts and other budgetary shifts to halt the financial slide. Nornes said the surplus demonstrates he and other legislators made the right decisions.
According to the Minnesota Department of Finance, the state’s budget will show a $1 billion surplus when the current biennium ends on June 30. The department’s report also projects a $737 million balance at the conclusion of the 2008-09 biennium. The combined forecast changes in both the 2006-07 and 2008-09 fiscal years result in a projected balance of $2.17 billion.
To view the complete budget report, visit www.finance.state.mn.us.
According to state law, the positive balance can be returned to citizens in the form of a rebate. However, that rebate is not automatic. It must be approved by the Legislature and governor.