Economic Forecast Predicts Budget Surplus 01 Mar 18

According to the latest Economic Forecast, Minnesota has a projected a $329-million budget surplus.

That is not as much as lawmakers were hoping for, but much better than the deficit forecast last November. Economists say the surplus reflects increased U-S economic growth, in part from stimulus by federal tax law changes.  The improved budget forecast continues into 2020 and ’21. 

Republican leaders say the new budget forecast shows tax cuts lead to economic growth and the gloom and doom that Democrats predicted because of last year’s tax cuts has not come to fruition.  Democrats argue continued investments in education and infrastructure will keep Minnesota’s economy growing.