MN Budget surplus eaten up by inflation

12/02/2006

November Forecast shows surplus, but inflation eats up additional funds


From: State Senator-Elect Ann Lynch
November 30, 2006


The November Forecast shows an additional surplus of $2 billion. When inflation is factored in, the state has only $1 billion for one-time spending and the other $1 billion is reduced to zero. State Senator-Elect Ann Lynch (DFL-Rochester) said this provides a challenge for lawmakers.


"It’s our goal to make strategic investments in education, property-tax relief, and health care but with no surplus this will be more difficult to do," Lynch said. "That said the Senate is committed to work in a bipartisan fashion and with the governor to produce a fiscally responsible state budget."


The information from the November Forecast will help lawmakers as they prepare their priorities for the 2008-09 budget. This is one of two reports the Legislature receives each year on how the state’s economy is performing. The "November Forecast" provides preliminary figures to help guide the governor and legislators in their budget priorities, and the "February Forecast" offers more solid numbers to use when shaping the budget.


Lynch said citizen input on the budget process will be very important. After Jan. 3, 2007, she can be reached at G-24 State Capitol, 75 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155, or 651-296-4848.