Governor Tim Walz and Legislative Leaders Comment on Budget Forecast

Minnesota budget officials announced Tuesday, December 7, that the state will have an historic surplus of $7.7 billion dollars for Fiscal Years 2022-23. The economic news, they said, results from a strong growth in income, consumer spending and corporate profits. The projected surplus will allow Minnesota’s budget reserve, also known as the Rainy Day Fund, to be replenished to its statutory maximum of $2.6 billion. Furthermore, the strong budget news is projected to extend in future budget years.

Governor Tim Walz said, "our economy is strong & growing" and that it was a "false choice" that the state had to choose between protecting people from COVID-19 and growing the economy. Senate Minority Leader Melisa López Franzen said the large surplus provides policymakers with the opportunity to improve access to child care and affordable housing. Senate Finance Chair Julie Rosen said the surplus is "staggering," but cautioned that inflation, supply chain and labor force participation could impact future projections.

The November budget forecast is the first of two economic projections that will enable legislators to shape or refine the state budget. The 2022 session will begin January 31, and legislators will receive another forecast in late February.