State Budget Outlook Improves

State lawmakers will have an additional $1.65 billion dollars when determining the state's two-year budget beginning July 1, 2017. Minnesota Management and Budget Commissioner Myron Frans, State Economist Dr. Laura Kalambokidis and State Budget Director Margaret Kelly outlined the latest economic expectations at a State Capitol press conference Tuesday, February 28.

According to Frans, the positive budget outlook continues through the next four years; however, unknown federal policy and actions create significant risk to the forecast.

Following the budget announcement, Governor Dayton and legislative leaders addressed the media. Dayton issued a word of caution to the legislature and listed several factors that could alter the expected surplus, including federal policy changes, including international trade, inflation, and slow economic expansion.

Republican leaders acknowledged the good budget news. "When you look at where the revenue comes from, it comes from Minnesotans, Minnesotans doing better," said House Speaker Kurt Daudt. "We need to put a state budget forward that puts Minnesotans first," he added.

"Even though we have a surplus, in our minds that doesn't mean that we should continue to increase spending at rates above what a family would spend," Senate Majority Leader Paul Gazelka said. Gazelka added that the budget will allow them to pass a "roads and bridges bill...we want tax relief and fix the health care crisis."

"I would like people to exercise some restraint as we go forward," said Senate Minority Leader Tom Bakk. He suggested policymakers direct $250 million dollars to the budget reserve to offset the $326 million dollars recently designated to discount rising health care premiums in the individual market.