Forecast projects a $1.65 billion budget surplus
The following statement was delivered by Governor Mark Dayton following this announcement.
“This budget forecast is more very good economic news for Minnesota. This is the eighth straight budget forecast that shows still-further improvement in our state's finances.
“Minnesota’s progress has been made possible, in large part, by our State's strong and still-growing economy, which has added 255,400 new jobs since January 2011.
“Our progress stands in stark contrast to the fiscal problems confronting many other states.
“The National Association of State Budget Officers reports that 24 states now have fiscal 2017 General Fund revenues coming in below projections.
“That is the highest number of states expecting revenue shortfalls since 2010.
“And nearly half of all states are projected to have budget shortfalls for fiscal year 2018.
“The Minnesota Departments of Revenue and Management and Budget will now reprice my previous budget proposals, based upon this forecast.
“They expect to complete this work by the end of next week. Accordingly, I will not release any Supplemental Budget proposals until the week of March 13th.
“However, I want to issue a strong note of caution to the Legislature.
“The section: ‘Significant Risks with this Forecast’ is not factored into this Forecast.
“It lists: US Policy Uncertainty, International Trade, Inflation, Long, slow-growth expansion, and the fact that 28 months remain until the end of FY 2018 & 19. I would add that there are 52 months until the end of the FY 20-21 biennium.
“Their effects are presently unmeasurable; however, their potentials for seriously negative impacts on our state's economy and fiscal well-being are enormous.
“At the National Governors Association Conference last weekend, the meetings with President Trump, with other key Administration officials, and among my fellow Governors were characterized by unprecedented degrees of uncertainty, anxiety, and confusion.
“In those meetings and in other recent pronouncements, Administration officials offered only generalities about health care reform, trade policies, and other crucial matters; and they regularly contradicted one another, when describing the details.
“(Note that just yesterday, the Director of OMB raised the specter of cuts in Social Security and Medicare, only to be immediately rebutted by the President's Press Secretary.)
“Similarly, despite repeated questioning by governors of both parties, Administration officials were unable – or unwilling, but I think it was unable – to provide details about their intended changes to Medicaid.
“All of which means that the uncertainties surrounding this Budget Forecast demand extreme caution and restraint from my Administration, the Legislature, and the various affected interest groups. We have worked hard to achieve these budget surpluses. They must be preserved.”
