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Hello from the State Capitol,
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Minnesota's February state budget forecast shows a positive balance of $3.7 billion for the remainder of the current fiscal year but projects a $1.5 billion deficit for the next budget cycle.
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It?s traditionally good news when you see the state has a budget surplus. But when that same projection notes you have a significant budget deficit that will need to be dealt with next session, there?s no reason to celebrate.
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Revenue forecast projections are created by analyzing financial decisions made in previous state budgets. In this case, last session the majority party spent a nearly $20 billion budget surplus, then raised taxes by another $10 billion, and crafted a budget that increased state spending by 40%.
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The $3.7 billion surplus must be allocated by the time session ends in May to keep the current budget in balance.
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People need to remember that any permanent spending increase approved this session will be tacked on to our projected budget deficit problem for next session. Residents should know I will be fighting for fiscal restraint for the remainder of the session, as its clear Minnesota?s taxpayers are already contributing plenty to state government.
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Have a good weekend,
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Marj
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