(ST. PAUL, MN) – Thursday, Minnesota Management and Budget (MMB) released its annual February budget forecast, showing an estimated budget surplus of $1.513 billion.  The numbers have gone up since the November forecast, which showed an estimated budget surplus of $1.332 billion for the 2020-2021 biennium. The forecast, which is updated twice each year to reflect the state’s revenues and expenditures, will be used to guide the consideration of a supplemental budget during the upcoming legislative session

“In 2019, we had the first middle-class tax cut in almost two decades and gave property tax relief for farmers from local school bonds, among other areas. The economy is booming, and the budget surplus, high as it is, shows that we can certainly accomplish our ‘Get Your Billion Back Plan.’ All caucuses in the House and Senate, as well as the Governor, agree that Section 179 conformity has to be passed, and now we have proof of its feasibility.  We have full emergency and state funds, so citizens can rest knowing that any money returning to their communities will not negatively affect necessary programs,” said Senator Torrey Westrom (R – Elbow Lake).

The newly unveiled surplus is one of the largest the state has ever seen, and the state reserve continues to reside at its “Fully Funded” $2.359 billion watermark. This is due to a $96 million increase in forecasted revenues and a $91 million decrease in forecasted expenditures. The small budgetary improvement continues into the next biennium. These details point to the current strength of Minnesota’s economy.