State Budget Surplus Projection Good News for 2015 Budget Session
ST. PAUL, MINN – The state’s lawmakers will return to the Capitol in 2015 to a projected surplus of $1.037 billion, according to Minnesota’s State Economist, Laura Kalambokidis. Sen. Tom Saxhaug (DFL-Grand Rapids) says the surplus is a sign the state’s economy is growing, and that businesses and personal households are recovering from the economic woes of the recession.
“It’s good to see Minnesota’s economy growing stronger, this is now the second year in a row we’ve seen a budget surplus,” said Sen. Saxhaug. “A healthy economy and a budget surplus occur when the state makes responsible investments. I look forward to the 2015 Session and further helping to improve the lives of Minnesotans.”
The Minnesota Management and Budget Office (MMB) reports the surplus came from a combination of higher than expected revenues and lower spending. The savings came primarily from lower Medical Assistance spending which helped add significantly to the budget forecast. According to forecast data, 25 percent more adults without kids enrolled in Medical Assistance while fewer families with children, elderly, and disabled people enrolled.
“While this is good news, it’s important to remember that these numbers are still projections, and that we must take into consideration inflation on current budget commitments,” Saxhaug cautions. “These numbers will help us make an educated approach to the budget in the coming months, but we won’t have final numbers until the February forecast is released.”
For more information on the November Forecast or any other legislative concerns, Sen. Saxhaug can be reached at Sen.Tom.Saxhaug@senate.mn or by calling his office at (651) 296-4136.