Budget and Economic Forecast February 2018
Latest: February 2018 Budget and Economic Forecast
February 28, 2018
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Minnesota’s budget and economic outlook has improved since November. A surplus of $329 million is now projected for the FY 2018-19 biennium. The revenue forecast for the biennium is up $353 million compared to November estimates. Higher forecasts for all the major tax types contribute to the change. This forecast reflects increased U.S economic growth arising in part from short term stimulus from federal tax law changes. After accounting for recently enacted legislative budget appropriations, spending for the biennium is projected to be $167 million lower than November estimates. Federal reauthorization of appropriations for the Children’s Health Insurance Program (CHIP) is the most significant driver of the lower overall expenditure forecast. The improved budget outlook continues into the FY 2020-21 planning estimates with modest structural balance projected for that biennium.