Minnesota's economic forecast shows $641 million surplus for current budget
December 2, 2020
Minnesotans are spending more than expected and state government is spending less, leading to a financial about-face Tuesday as economists predicted that a state budget deficit had flipped to a $641 million surplus.
State leaders went from figuring out how to patch a hole in the current budget to anticipating some extra dollars, which could be used for priorities like COVID-19 relief. Still, budget officials warned the ongoing pandemic and other factors make the state's financial picture more uncertain than usual.
Tuesday's forecast also looks ahead to the next two-year budget cycle, which starts July 1. Planned spending appears likely to exceed revenue in coming years, leading to a forecast $1.27 billion gap in the next budget. But that shortfall is far smaller than expected seven months ago.