This surplus shows that Minnesota’s economy is continuing to grow. It shows that the actions that DFL controlled legislature and the Governor took last year has put the state on very stable footing. This budget is the first real structurally sound budget since 1999. We’re in a very strong position in this session to continue to pay back some of the different kind of borrowing that has been done in the previous decade. The $1.2B provides a tremendous opportunity to use that one-time money wisely and put some additional money into the state’s budget reserves.
Although 2014 is not a budget year, the projected surplus provides an opportunity for legislators and the Governor to work together to apply surplus dollars toward smart investments that will bolster our economic recovery.
As we finally climb out from a decade of deficits and failed budget policies, we can ensure stable, long-term economic health by making sure our budget reserves, or rainy day funds, are robust. Minnesota’s budget reserves are about $1 billion less than they should be, according to the state’s non-partisan fiscal experts that manage the long-term stability of taxpayers’ dollars.
We are eager to work with the Governor and our colleagues from both sides of the aisle as we evaluate all options for any potential surplus dollars to position Minnesota for continued economic growth.