Minnesota surplus: good, bad or unreal?

Last month, Minnesota Management and Budget predicted state government will have a budget surplus of $1.3 billion. This set many a tongue wagging among legislators, economists, agencies and taxpayers as to what this will mean for the state. Specifically, what can Minnesota get out of such a windfall, or is it even a windfall at all?

Regardless, it does look like good news for the state. According to its report on the budget and economic forecast, Minnesota Management and Budget stated, “Minnesota’s budget and economic outlook has improved since the end of the 2019 legislative special session. A better than expected close to the last biennium, an improved revenue forecast and a small decrease to estimated spending create a forecast surplus of $1.332 billion in the FY 2020-21 biennium.” However, the report adds that while Minnesota’s economy and revenues continue to grow into the FY 2022-23 planning estimates, budget challenges remain for that biennium.

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