State lawmakers anxiously await Wednesday’s budget forecast, which will make it clear whether Minnesota is maintaining the pace for a projected $876 million surplus — or falling into another deficit.
The state’s November forecast projected that cost savings — largely in health care — and additional revenues would give the state a nearly $1 billion cushion to prop up cash flow and reserve accounts.
House Speaker Kurt Zellers said on Friday he’s relieved that Minnesota again has a buffer to prevent against forced short-term borrowing in the future.
“First and foremost, filling up that cash flow account was the No. 1 thing because it was very concerning to a lot of us,” he said.
“It’s nice to have a budget reserve. It’d be nice to keep it.”
Both Zellers and Deputy Senate Majority Leader Julianne Ortman said they expect to see a surplus on Wednesday. They credited the federal payroll tax cut as part of the reason.
“We are looking for very good news,” Ortman said. “Last year at this time, we heard that we had a budget deficit of $5.2 billion, but through strong fiscal discipline we now have a surplus of $876 million.”
If economic growth continues, Zellers said that he’d like to cut business tax rates over the long term. The GOP is also ready to make tough decisions if the report is negative, he said.
“Absolutely,” he said. We’ll prepare, as we always have, for whatever the situation is.”
Democrats were tight-lipped about their predictions. Widespread reports before the November forecast had expected a $1 billion deficit.
“I think that we learned last time that making any predictions is not a good idea,” House Minority Leader Paul Thissen said.