Today, at 11:45 am, MN Management and Budget Commissioner Jim Schowalter, and State Economist Dr Laura Kalambokidis will be announcing the preliminary projected budget figure leading into the 2023 legislative session. In February, the actual budget projections will be announced and the governor and the legislature will be establishing the 2023-24 Biennial Budget based on this figures.
The numbers we are hearing is a surplus north of $12 billion.
One interesting facet set to occur is the calculation of the inflationary effect. In advance of the 2002 election, with three-way divided government House Majority Leader Tim Pawlenty (R-38A, Eagan) and Senate Majority Leader Roger Moe (DFL-02, Erskine) agreed to exclude inflation in budgeting, Republicans didn’t want to put government spending on “autopilot”. Of course inflation was incorporated on the revenue side of the formula, just not on the spending side. As we understand, inflation will be incorporated and this will have an impact on the overall budget surplus.
Check back over the course of the day and we will make updates to this article and provide to you our unique insights on what the DFL controlled government intends to deliver.
The projected surplus for FY 2022-23 is and additional $5 billion, when combined with the leftover amount from the last legislative session of $7 billion and the projected surplus 2024-25 is $17.616 billion with $12 billion being one-time money.
The Revenue Forecast is now online. https://mn.gov/mmb-stat/000/az/forecast/2022/budget-and-economic-forecast/november-2022-forecast.pdf
The state debt capacity is $2.2 billion.