A warning from a long-time state legislator as lawmakers eye a projected 1.5-billion-dollar budget surplus. Outgoing House Ways and Means Committee Chairman Jim Knoblach from Saint Cloud says “things can change very, very quickly,” pointing to large deficits that followed surpluses in the early 2000’s and at the start of the Great Recession. Knoblach says, “As we look to an economy where we do see a few storm clouds perhaps on the horizon, I just wanted to bring up this history so people have it in mind.”
Fellow Republican Jerry Hertaus from Greenfield responds, “We might be in a much healthier circumstance this time with a larger budget reserve.” But analysts say even the two billion dollars currently in the state’s “rainy day fund” might not be enough if there’s a major economic downturn or deadlock over the federal budget.