February Budget Forecast


The Februrary budget forecast released on Wednesday was pretty good news.   When you add this surplus of $323 million with the $876 from November you have a total surplus for the 12-13 biennium of $1.199 billion dollars.  Under current law, the first $5 million is directed to the budget reserve bringing the balance to $653 million.  The remaining $318 million is committed to begin paying back the K-12 Education shift passed last legislative session.  After this action, $2.4 billion in school payment shifts remain.

Just like in November, lower spending estimates account for the majority of the surplus.  Approximately two-thirds of the change, or $230 million, and was primarily due to spending reductions in human services.  Revenue updates account for the other one-third or $93 million with the increase coming from income and sales tax.  State revenues are stable and Minnesota labor numbers are outperforming other states.

The forecast shows a projected deficit of $1.1 billion for fiscal years 2014-15.

Please see full article below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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