St. Paul, Minnesota — Today, Minnesota Management and Budget released the February Economic Forecast, showing a projected positive balance of $1.5 billion for the current biennium. While the forecast does show a positive balance, it includes inflation on the revenue side and excludes it on the spending side in several key areas. When estimated inflation is taken into account, there is a projected deficit of $654 million in fiscal years 2022-23.
“There is only a ‘surplus’ in the true sense of the word if Minnesotans believe that we’ve fully invested in what Minnesota needs,” said House Speaker Melissa Hortman. “We need to make investments in education, health care, and families’ economic security. With a potential economic slowdown on the horizon, DFLers think it’s important to make investments in the areas that will build a better future for all Minnesotans.”
“All Minnesotans benefit from a strong economy, and Minnesota needs more workers and better education to succeed,” said House Majority Leader Ryan Winkler. “Investments in early childhood education to close the education opportunity gap, reducing barriers to immigration, and making affordable health care a reality will all contribute to Minnesota’s future economic success. Minnesotans support these investments and welcome immigrants to our communities. Irresponsible Republican tax cuts and future deficits will undermine our ability to make the long-term sustainable investments our state needs.”