Budget Forecast Shows Continued Improvement – February 29, 2012
FOR IMMEDIATE RELEASE
CONTACT: John Pollard
Legislative & Communications Director
Current Law Allocates Entire Balance to Begin Paying Back Education Shift
St. Paul—Minnesota Management & Budget Commissioner Jim Schowalter released the February budget forecast which shows a modest $323 million improvement for the remainder of the 2012-13 biennium.
Under current law, the first $5 million is directed to the budget reserve bringing the balance to $653 million. The remaining $318 million is committed to begin paying back the K-12 Education shift passed last legislative session. After this action, $2.4 billion in school payment shifts remain.
“This forecast confirms the last forecast – our state’s economy is growing and our budget situation is improving. The trouble is that we still have lots of IOU’s so it’s not a time to let down our guard,” Schowalter said.
Lower spending estimates account for approximately two-thirds of the change while revenue updates account for the other one-third. State revenues are stable and Minnesota labor numbers are outperforming other states.
The forecast shows a projected deficit of $1.1 billion for fiscal years 2014-15.
A complete report of the November forecast can be found on the MMB website at www.mmb.state.mn.us.