SAINT PAUL, Minn. — Minnesota Management and Budget (MMB) announced yesterday a budgetary balance of $1.544 billion in the new biennium and $456 million in the following biennium. MMB experts warn economic growth will start to slow in the years ahead.
“While I am happy to see the state doing so well, a large portion of this budgetary balance is one-time money,” said Sen. Jerry Newton, DFL-Coon Rapids. “We cannot afford to make ongoing investments with one-time money. Instead we should be discussing where we can spend one-time money that will make a real difference – places like the Minneapolis veterans’ home and our veterans’ homes across the state that are in need of repair.”
“This budgetary balance allows us to have meaningful discussions about strategic investments that help all Minnesotans. We owe that to Minnesota’s seniors, students, working families, farmers, and veterans across the state,” continued Senator Newton.
Senator Newton noted that this is only the projected balance. “The final number will depend on the strength of the nation’s economy and uncertain relations with our major trade partners. It is a good time to be cautious.”
MMB will release a revised budget forecast for the new biennium in February 2019. The Governor uses the February forecast as a final point of reference to propose a new two-year state budget for lawmakers to consider. This will set the tone for decisions regarding future spending during the legislative session.