On Monday, Senate DFL Leader MelisaLópez Franzen urged caution and restraint in the wake of a new state budget forecast that projects a $9.253 billion surplus over the next two years so that the state doesn’t set itself up for future deficits. While this forecast, as well as the estimates for the structural balance in FY 2024-25 remain positive, there is more uncertainty due to inflation and geopolitical conflict, which pose a risk to the budget and economic outlook, she said.
In response to today’s forecast, Senator López Franzen released the following statement:
“Today’s announcement confirms that Minnesota has a historic budget surplus in our short-term future despite the many challenges of the COVID-19 pandemic. At the same time, new unforeseen challenges like inflation and the conflict in Ukraine have the potential to upend the global economy. We also need to keep in mind that much of this improvement will be a one-time boost in our state’s bottom line and won’t last forever. The Senate DFL Caucus remains committed to responsibly helping Minnesota families afford rising costs by lowering the costs of childcare and health care, rebuilding our infrastructure, supporting our schools, and delivering the unfinished business of securing immediate direct relief for all our hard-hit frontline workers. We will also press tax proposals that will help working families afford rising costs, while also being responsible into the future so that we don’t see budget deficits.”
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