The Minnesota Management and Budget agency (MMB) announced on Thursday, December 6 that the State of Minnesota is projected to have a budget surplus of $1.544 billion for the upcoming two-year period. The state’s budget reserves, also known as the “rainy day fund”, total $2.075 billion, the highest number in Minnesota state history.

“Over the last two years, the legislature managed the budget responsibly while increasing education funding across the board,” said Senator Carla Nelson [R-Rochester], Chairwoman of the Senate E-12 Education Finance and Policy Committee, which oversees forty percent of Minnesota’s budget. “It’s clear our leadership is working. Not only are budget reserves at record levels, but this surplus shows we will not have to raise taxes to address the issues that matter most to Minnesota families. We can continue to invest in our students across the state.”

In March, MMB will release an updated forecast that the legislature will use for setting the state budget. Even though MMB projects an over $1.5 billion surplus for the upcoming budget cycle, the agency predicts the surplus will decline by over two thirds in the following budget cycle due to slowing economic growth. This means any ongoing investments made by the legislature this session could face uncertain funding circumstances in the very near future.

“Investing in education is an investment in the next generation of Minnesotans,” added Senator Nelson. “But, we must keep in mind, funding commitments made today need to be sustainable for the future. As Chairwoman of the Senate Education Committee, I look forward to establishing an education budget that puts students first and funds what works.”