State’s Economy in Good Shape One Month Prior to 2015 Session Kick Off
ST. PAUL, MINN – The state’s lawmakers will be returning to the Capitol in 2015 to a projected surplus of $1.037 billion, according to Minnesota’s State Economist, Laura Kalambokidis. Sen. LeRoy Stumpf (DFL-Plummer), chair of the Senate Capital Investment Committee says the surplus is a symbol of the state’s continued economic strength, and a sign that last session’s $1.2 billion bonding bill was a solid investment for Minnesota.
“When you craft honest budgets and pair that with strategic investments in roads and bridges, housing and economic development projects, you create a recipe for success. Minnesota’s unemployment rate is down and businesses are doing well, this surplus will give us more flexibility this coming session,” said Sen. Stumpf.
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 and elderly and disabled people enrolled.
“It’s important to remember this report is a projection of the current trends in our economy, and that we must consider inflation on current budget commitments when we talk about the surplus,” Stumpf adds. “The $1 billion surplus gives the legislature room to craft a smart budget that will continue to serve Minnesotans and help all of us thrive.
For more information on the November Forecast or any other legislative concerns, Sen. Stumpf can be reached at LeRoyS@senate.mn or by calling his office at (651) 296-8660.