Minnesota Report

The Office of Management and Budget released the Revenue Forecast today showing a $1.332 billion surplus. When the legislature reconvenes on February 11th, they will wait for the February Forecast to set their legislative priorities. https://mn.gov/mmb-stat/000/az/forecast/2019/budget-and-economic-forecast/nov19-final-report.pdf

The economic outlook is expected to take a downturn showing the GDP (Gross Domestic Product) idiocies in decline out to 2023. Minnesota is still seen to be outpacing the national average.

Much of the surplus is realized from the following:

Forecast expenditures for education aid programs are down $54 million (0.3 percent) from previous estimates but are partially offset by an additional appropriation for safe schools supplemental aid of $30 million that was activated when FY 2019 closed with a general fund balance that was higher than projected at the end of the legislative session. Total health and human services (HHS) spending is projected to be down $97 million from end of session estimates largely due to lower enrollment in Medical Assistance. These savings, along with $51 million (4.3 percent) lower projected debt service, are partially offset by increases in property tax aids and credits, the implementation of two additional contingency appropriations in FY 2020-21, and the carryforward of unspent appropriations

As is our tradition we inquired as to the size of the state’s debt capacity and learned we have a 3.5 billion availability, though we doubt the Senate Republicans will support anything over a billion. https://mn.gov/mmb-stat/000/az/forecast/2019/budget-and-economic-forecast/debt-capacity-forecast.pdf