Minnesota Management and Budget (MMB) today announced that the projected budget shortfall for FY2014-15 has fallen to $627 million, down from the $1.1 billion estimate last November. This change is largely a result of increased income tax revenues and decreased projected overall spending.
State general fund revenues for the current FY2012-2013 biennium are now estimated to have a $295 million balance, which will allow for accelerated payback of the outstanding school aid shifts. Just over $800 million remains to fully repay those funds.
National economic models predict economic growth to continue at a slow pace. The potential impact of federal sequestration for Minnesota will likely be less than much of the country, but could seriously impact the state economy's ability to weather possible future bumps.
Go here for more information on the 2013 February forecast.
With this new forecast in hand, Governor Dayton will revise his budget proposal and release it the week of March 11.