Minnesota Will Have A Massive Budget Surplus For 2020: Projection

MINNESOTA — The state of Minnesota will have more than a $1 billion surplus for the 2020-2021 budget, according to the Minnesota Management and Budget office's latest economic forecast, released Thursday.

"Minnesota’s budget and economic outlook has improved since the end of the 2019 legislative special session," the office said.

"A better than expected close to the last biennium, an improved revenue forecast, and a small decrease to estimated spending create a forecast surplus of $1.332 billion in the fiscal year 2020-21 biennium. The stable budget outlook allows for an automatic allocation to the budget reserve account, bringing the reserve balance to its statutory target level of $2.359 billion. While Minnesota’s economy and revenues continue to grow into the fiscal year 2022-23 planning estimates, budget challenges remain for that biennium."

MMB Commissioner Myron Frans, State Economist Dr. Laura Kalambokidis, and State Budget Director Britta Reitan will release more information on the surplus later Thursday.