SAINT PAUL, Minn. – Today, the House Committee on Ways and Means held an informational remote hearing to review the recently-released November Economic Forecast. The forecast highlighted a historic $7.7 billion positive budget balance for the current two-year cycle.
“The state’s strong economic position is a testament to recovery efforts from President Biden, Governor Walz, and DFLers in Saint Paul and Washington, but above all else, is a credit to the Minnesotans who have been resilient through some incredibly difficult times,” said Rep. Rena Moran (DFL – Saint Paul), committee chair. “Despite the strong forecast including a historic budget surplus, Minnesotans are still facing challenges in their daily lives. House DFLers are committed to addressing the urgent needs of workers and families right now, as well as continuing to build a state that works better for everyone over the long term.”
Officials from Minnesota Management and Budget (MMB) joined lawmakers to break down the projections and learn more about the details including Commissioner Jim Schowalter, Dr. Laura Kalambokidis, Minnesota State Economist, and Bryan Dahl, MMB’s Financial Planning Director all provided testimony to the committee.
The forecast includes strong indicators of economic recovery, including growth in income, consumer spending, and corporate profits all driving revenue growth. Employment continues to recover toward pre-pandemic levels and U.S. Real Gross Domestic Product continues to grow. The state’s budget reserve again has a healthy balance of $2.656 billion. Still, officials noted caution due to economic uncertainty and the continued pandemic, both of which pose a significant risk to the forecast.
MMB will announce its next forecast in February or early March. The 2022 legislative session is scheduled to begin January 31.