State estimates $323 million surplus through 2013 budget cycle

Categories: Economy
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Today's projection is the second positive one in a row following years of doom and gloom.
The state's budget for the 2012-13 budget cycle continues to pleasantly outpace expectations.

Later today, state officials will announce that the current two-year budget has a $323 million surplus. That good news comes on the heels of a surprising November projection that showed the state $876 million richer than expected.

The November surplus was used to fill the budget reserve and the state's cash flow account. This time around, the $323 million will be used to further replenish reserves and begin restoring the $2.7 billion lawmakers borrowed from public schools -- in other words, don't expect lawmakers to use the dough for additional spending or tax relief.
 
The positive projections follow two straight years of disastrous reports during the recession of 2008-09. But even today's budget news isn't all good: The forecast predicts a $1.1 billion shortfall for the 2014-15 biennium.

Earlier this week, Minnesota Management and Budget Commissioner Jim Schowalter said, "the Great Recession pounded us," adding that "one or two, or even three good forecasts are not going to fix that right away."

In sum, today's forecast conforms to the trend we've seen with most economic indicators in recent months: Things are heading in the right direction, but there's still a long way to go to undo the damage wrought by the Great Recession.

Related coverage:
-- Minnesota job market improved drastically last year
-- Minnesota child poverty nearly doubled during last decade
-- Minnesota foreclosures down in 2011, but still well above pre-housing crisis levels
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11 comments
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Mn Worker
Mn Worker

The "Great Recession" ended June 2009. Obama-Biden gave us the recovery summer of 2010. Now in Minnesota we have a surplus this year but a deficit next year? 

The OBAMA depression is coming. Hide the money. 

webcelt
webcelt

How about issuing fewer tobacco bonds? We're blowing our settlement money just because we don't want to raise taxes on rich people. Well, because a recalcitrant minority doesn't want to raise taxes on rich people.

Kirk the Conservative Jerk
Kirk the Conservative Jerk

You could take 100% of the yearly incomes from people making over 500k.That would equal less than 5 billion, and that would be a one time money grab.  Because you have now screwed your future ability to tax these people because there broke.

Do the math, the "tax the rich" mindset would NEVER cover the level of the spending increases.   We increased the overall state budget 4 billion last biennium alone.

webcelt
webcelt

 Wow. No better at math than reading comprehension. You might want to check some of your own side's rhetoric about how much rich people pay in federal income taxes. Here's a hint: it's a wee bit more than $5 billion.

MN Voter
MN Voter

Deflect much? sheesh. At least TRY to stay on topic.

Kirk the Conservative Jerk
Kirk the Conservative Jerk

 My comment was a direct response to the tax the rich comment of webcelt. I'm confused, what deflection?

HotLunch
HotLunch

Time to pay back the schools!

Kirk the Conservative Jerk
Kirk the Conservative Jerk

Pay back over two billion dollars from the shift?Funny to think they "borrowed" over two billion, at the same time they increased the K-12 budget over one billion.  Schools have a spending problem...

MN Voter
MN Voter

"they" being your repub legislature. You proud bro?

Kirk the Conservative Jerk
Kirk the Conservative Jerk

Ya, Dayton and the Dem's budget did screw us over.  The Republican budget died remember?Rep. Winkler (d) tripped the school shift numbers under the revised budget.They were just talking about this yesterday in committee.

Kirk the Conservative Jerk
Kirk the Conservative Jerk

You mean the Republican budget that Dayton vetoed?You mean the budget that the media said "democrats win and the Republicans cave"?Oh, that budget which borrowed from the schools...

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