ST. PAUL, MINN. – Minnesota’s February budget and economic forecast is showing the biggest surplus the state has seen in well over a decade. The Minnesota Management and Budget Office (MMB) reported a positive balance of $1.233 billion for FY 2014-2015. This is an improvement of $408 million since the November budget forecast.
As Chair of the Senate’s Tax Committee Senator Rod Skoe (DFL-Clearbrook) is citing MMB’s recommendations to not spend the surplus, but rather to place it into the state’s budget reserves.
“The surplus of $1.2 billion shows that Minnesota’s economy is strengthening, and that’s good news for our state. But, we need to be cautious of the volatility of our tax system. Our budget reserves are lower than they should be and I would like to see the majority of this surplus go to bolstering our reserves,” said Sen. Skoe.
MMB recommends the state increase its reserves by $1 billion. If you include inflation on state expenditures, which is currently done with revenues, it will provide a more accurate picture of Minnesota’s future and practically eliminate the proposed surplus for FY 2016-2017. Senator Skoe looks forward to hearing from Minnesotans as the Senate prepares to make decisions that will secure long-term prosperity for the state.