ST. PAUL – Today the Office of Minnesota Management and Budget announced a forecast balance of $900 million for the FY 2016-17 biennium, a reduction from the $1.2 billion forecasted last December. State Rep. Clark Johnson (DFL-North Mankato), said the February forecast shows that Minnesota’s budget is stable, but uncertain.
“I am glad to see a surplus,” said Rep. Clark Johnson. “But the fact that projections have fallen since November should give lawmakers pause about our economy’s future. While the state has a projected surplus we should continue to build our budget reserves to the recommended levels by the state’s top economists. This will not be the most popular idea, but it looks to the future and protects the investments we have made in education over the last several years.”
The forecast revealed that Minnesota continues to have low unemployment and a stable budget. However, global economic trends forecast a more pessimistic outlook for the future.
“This budget forecast is going to change negotiations on transportation,” said Rep. Johnson. “While some were hoping to use this year’s surplus to fund roads for the next 10 years this forecast showed how unreliable the general fund can be-even over just a few months. I will continue to push to fund our transportation system through long-term constitutionally dedicated funding.”
The 2016 Legislative Session begins on March 8th.
###