This morning, the Minnesota Management & Budget office released the November forecast. Changes in general fund revenue and expenditures for the current biennium have increased the projected balance for FY 2014-15 from $47 million to $1.086 billion. The forecast anticipates revenues increasing $787 million (2%), with spending dropping $247 million (0.6%) lower. A net reduction in general fund reserves added an additional $5 million to the bottom line.
As in recent forecasts, current law requires any forecast balance be used to repay K-12 shifts. The first $246 million of the balance will be used to complete repayment of the K-12 school property tax recognition shift. Additionally, $15 million is transferred to the state airports fund, restoring money originally borrowed in 2008. This forecast completes previous shifts and borrowing, reducing the forecast balance to $825 million.
With a projected budget balance of $825 million, it is likely that a supplemental budget will be taken up when the legislature returns on February 25, 2014. Some legislators are suggesting that the positive forecast will allow for a repeal of business-to-business taxes that were passed last session. Governor Dayton said that he would not be releasing a supplemental budget until the February forecast is released in early March.
Further information can be found on MMB's website.
