Minnesota's staggering surplus stays mostly unchanged at $17.5 billion

For the first time in 20 years, the prediction accounts for inflation in spending

Feb 28, 20230

Renée Jones Schneider, Star Tribune count

Governor Tim Walz speaks at a news conference on the Minnesota economic and budget forecast in St. Paul on Monday.

Minnesota's staggering estimated budget surplus remained largely unchanged at $17.5 billion, with Monday's financial forecast setting up DFL state leaders to continue their push for significant new spending in the next budget.

Higher-than-anticipated tax dollars and unspent cash from years past boosted revenue projections. The latest figure would have eclipsed the previous record-breaking $17.6 billion surplus prediction from a few months ago.

But for the first time in two decades the forecast factored inflation in spending, eating up some of the revenue growth. State leaders said the move paints a more honest picture of state finances.

https://www.startribune.com/how-will-inflation-affect-minnesotas-surplus-budget-officials-to-update-forecast/600254701/