According to state budget officials, Minnesota is likely to have a Minnesota Budget Surplus of more than $3.7 billion, which encouraged lawmakers to spend wisely to avoid a potential future deficit.

It’s great to have a $3.7 billion Minnesota Budget Surplus, said House Speaker Melissa Hortman, DFL-Brooklyn Park.

According to Minnesota Management and Budget, the latest Minnesota Budget Surplus represents an increase of more than $1.3 billion compared to November, which was $2.4 billion for this two-year budget cycle ending next June.

Budget government officials credit higher tax collections importantly from corporations and companies. Spending estimates remain unchanged and the near-term economic outlook has improved greatly with growth expected through the year 2027.

But the risk signs from the last Minnesota Budget Surplus forecast remain the same. According to Erin Campbell, the commissioner Budget of the state projections show profits will not keep pace with spending in the next budget cycle, creating an imbalance of $1.5 billion for fiscal years 2026 and 2027. So, Minnesota Budget Surplus 2024 is a risky one.

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House Speaker Melissa Hortman said he does not foresee making any promises to spending that Minnesota can’t pay for

If the lawmakers don’t spend any of the Minnesota Budget Surplus on supplemental budget items this 2023, the money will carry over and provide another Minnesota Budget Surplus cushion. But anything they spend this year will mean less money on the bottom line when lawmakers in January craft the next two-year budget.

In the meantime, some stakeholders are vying for a slice of the Minnesota Budget Surplus this year, teeing up a battle between competing priorities that come with additional price tags when there isn’t enough money to go around.

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