The State of Minnesota’s economic officials released their semiannual forecast for the State’s budget, and the forecast looks pretty rosy:
Minnesota’s strong economy and an anticipated savings in health care costs are expected to leave the state with a $1.5 billion budget surplus for the next two years, a dramatic increase from a projection earlier this year.
The state’s economist and budget officials release forecasts twice a year, looking at state, national and even global economic trends. This new projection is $1.2 billion higher than the forecast in February.
Minnesota Management and Budget officials attributed the jump to increased income and business tax collections and lower spending, particularly on health care.
Minnesota has had a Democratic Governor, Mark Dayton, for the last eight years, and will continue to have a Democratic Governor for the next four years after Democrat Tim Walz won this year’s election. As was noted in the article, when Democrat Mark Dayton took office in 2011, replacing Republican Tim Pawlenty, who had been Governor from 2003-2011, the state’s situation wasn’t looking so good:
Budget numbers released Thursday “show a remarkable recovery from the financial shambles in which I took office eight years ago,” said outgoing Gov. Mark Dayton, who came into office facing a $6.2 billion deficit, drained reserves and late payments to public schools.
Much of this improvement can be attributed to policy decisions made by Democrat Mark Dayton, who pushed through a $2.1 billion tax increase (mostly on the wealthy), created free, statewide, all-day kindergarten, created a $1.9 billion dollar rainy day reserve for the State’s budget, increased education funding, added more school counselors and teachers, upgraded water treatment centers, expanded Medicaid, and secured funding for expansions of the Mayo Clinic in Rochester and the Mall of America in Minneapolis.
Now, the incoming Governor will be able to use the state’s budget surplus to help the people of Minnesota, and to continue the good governance that has been in place for the last eight years:
Incoming Gov. Tim Walz, a Democrat, will take over in January in a strong position to start working on some of his campaign vows, including boosting educational spending, expanding publicly funded health care and new money for transportation.
The people of Minnesota are learning that they are much better off with a Democrat as Governor. Voters in other states might want to take note.