The latest state economic forecast comes out tomorrow which will tell Minnesota lawmakers how much money they have to work with when setting the state budget. The big question: Will the projected surplus be higher or lower than the last forecast in November? Governor Mark Dayton says, “I think in my own mind it’s probably a wash…. Probably come out basically the same as where we are now: 1.4 billion [dollars] projected surplus for this next biennium and the same for one following, but I’d gladly be mistaken if it’s better.” Dayton unveiled his budget proposal earlier and will make adjustments if needed. Republicans in the House and Senate are waiting until after the forecast comes out to release their competing budget plans.
Dayton says about the state budget outlook, given the new administration in Washington D-C, “The downside risk is greater than the up-side probability at this point,” but jokes “that’s just my own slightly-educated opinion.” Dayton notes national G-D-P growth was below projections, although there are mixed reports that *state* tax revenues have slightly exceeded projections to date.