Today, Minnesota Management and Budget released the November Economic Forecast, showing a projected $641 million surplus in the current biennium and a $1.273 billion shortfall in the FY 22-23 biennium. The forecast includes inflation on the revenue side and excludes it on the spending side in several key areas. Inflation is estimated to be $1.3 billion in the next biennium, which could roughly double the budget shortfall. Minnesota currently has $350 million in the state’s cash flow account and $2.377 billion in the budget reserves.
Minnesota House Speaker Melissa Hortman and Majority Leader Ryan Winkler released the following statements:
“This is positive news, but we have a long way to go to fully recover from COVID-19,” said Speaker Hortman. “We need to invest in the areas that will help Minnesotans make it through this crisis and thrive after it, including protecting their health and economic security. This forecast allows us to provide some assistance to those struggling the most during this difficult time, and then focus on rebuilding Minnesota’s economy in the 2021 Legislative Session. House DFLers are committed to building a Minnesota that works better for everyone.”
“Today’s forecast is further evidence that Minnesota has the resources to invest in our people and provide economic opportunity for everyone. We only need the will to act,” said Majority Leader Winkler. “We need to focus our efforts to help working families, small businesses, and Minnesotans hit the hardest by this pandemic — not corporations, the wealthy, and well-connected who are still doing very well. The relief bill that we presented last week puts working families first, strengthening unemployment insurance and providing support for small businesses. The question now is whether the Republican Senate majority agrees.”