Minnesota Budget Surplus brightens the state in the near term but with financial pressure on the horizon.

The Department of Minnesota Management announced the Minnesota Budget Surplus

Last Tuesday, the Department of Minnesota Management reported that the state has a $3.7 billion Minnesota budget surplus projected for the budget that ends in 2025, up about $1.3 billion from the last forecast in December.

According to Governor Tim Walz, “The numbers say for themselves of a humming economy,”. “Minnesota Budget Surplus is a hope in Minnesota. We’re coming out of the COVID-19 pandemic, a global recession. Minnesota is well situated for the future economy.”

The Department of Minnesota Management reports that the Minnesota budget surplus came as a result of higher-than-expected consumer spending and corporate profit growth. But it also predicted that with financial strain. Minnesota spending forecasts remained mostly static.

Read Also: Minnesota Tax Rebate Checks: Next Week, Some One-Time Payments Will Be Released Once More!

$3.7 Billion Minnesota Budget Surplus Caution should still be exercised

For the Minnesota Budget, the foundation is strong. But spending responsibilities would mean pressure on the next two-year budget with the potential for a deficit approaching $1.5 billion by 2027, so officials have advised restraint.

According to MMB Commissioner Erin Campbell, “Caution should still be exercised this legislative session with regards to ongoing expenditure’’.

Read Also: Minnesota Department Of Revenue Will Reissue More Than 128,000 Checks For Unclaimed Tax Rebates