total-news-1024x279-1__1_-removebg-preview.png

LANGUAGE

Minnesota projects short-term budget surplus, long-term deficit as health, education spending hikes kick in

Minnesota’s budget outlook remains stable in the short term, but there are clouds on the horizon, officials announced Wednesday.

The latest forecast from the Minnesota Office of Management and Budget projects a $2.4 billion surplus over the two-year budget period ending in June 2025. That’s an $808 million increase from projections at the end of Congress in May. The larger surplus remains only a fraction of the $72 billion budget.

Minnesota considers changing flag after 1893 historic design accused of racism against Native Americans

Tax revenues are expected to exceed previous forecasts due to rising expectations for growth in consumer spending and corporate profits. Budget officials said the reason for this was that the short-term economic outlook for the U.S. economy had improved since February, with consumer spending, business investment and employment stronger than expected.

Minnesota Governor Tim Walz speaks at a press conference about public safety as the jury deliberates in the Derek Chauvin murder trial on April 19, 2021 in St. Paul, Minnesota. (Steven Maturen/Getty Images)

But budget officials also warned of potential problems for the next two-year budget period, which begins in July 2025. Higher estimates for health and welfare services spending and education spending predict a deficit.

The latest projections mean lawmakers will have a little more money to spend when they reconvene in February for the 2024 session. Their options include spending it, putting it in the bank, or taking a tax break.

CLICK HERE TO GET THE FOX NEWS APP

Officials are expected to release further details later Wednesday. Gov. Tim Walz and legislative leaders from both parties are expected to respond.

Facebook
Twitter
LinkedIn
Reddit
Telegram
WhatsApp

SUBSCRIBE TO

Sign up to stay informed to breaking news