State’s projected budget surplus holds steady at $17.5 billion

By Rob Hubbard

Normally, $100 million would be considered quite a chunk of change. But, in the context of Minnesota’s projected budget surplus, it seems the proverbial drop in the bucket.

Minnesota Management and Budget officials revealed the February budget forecast Monday, and the numbers aren’t that different from what was projected in November. Then, it was $17.6 billion. Now, it’s expected to be in the area of $17.5 billion for the next biennium, which begins July 1, 2023.

If it weren’t for a new state law that requires inflation to be accounted for in both sides of budget projections, the surplus would be even larger, for inflation is expected to remove $1.4 billion from the state’s bottom line.

“This is amazingly close to what we predicted in our last forecast,” said Jim Schowalter, the commissioner of Minnesota Management and Budget. “In December, I suggested that the ups and downs of the state budget were starting to get a little less extreme. I’m happy to say that this forecast confirms that expectation. The economy is stable and the budget outlook is very good.”

A lot of the optimism seems to stem from a rosier national outlook. State Economist Laura Kalambokidis attributed much of the good news to improvement in the U.S. economic outlook, with lower inflation and a milder recession than previously expected.

The state’s chief macroeconomic consultant is a firm called IHS, and it expects real gross domestic product growth in the U.S. to average 1.8% annually from 2024 through 2027, a slight rise from the 1.7% average annual rate projected in the November forecast.

“IHS expects a mild recession,” Kalambokidis said. “A recovery is expected to begin in the third quarter of this year.”

She added that IHS expects inflation to slow this year while the Federal Reserve institutes two more interest rate increases to go with the seven last year and the one so far in 2023.

Taking things down to a statewide level, most of the projected surplus is left over from the current biennium. But revenues from income and corporate franchise taxes are up over previous estimates. Looking further down the road, revenues are forecast to exceed state spending through fiscal year 2027.

By Roberto Fonts CEO of Dialog-One

As a Cuban immigrant who arrived in Florida during the Mariel Boatlift of 1980, I can attest to the profound impact of President Carter’s policies on our lives. His swift response to our arrival was a lifeline for the 125,000 Cuban refugees who sought safety and opportunity in the United States.

President Carter understood the immediate need for assistance and created a plan of action that allowed us to enter the country quickly and safely. His compassion and selflessness were evident in his commitment to providing refuge for those who had lost everything in Cuba. His actions were not without challenges, as the influx of refugees created a burden on public resources and cultural tensions with the American residents of south Florida. However, President Carter remained steadfast in his dedication to helping us start our new lives. Through grants towards education programs and job training programs, President Carter gave us the tools we needed to settle down quickly

Mayor, Atlanta, Georgia

By Andre Dickens

Atlanta has a proud legacy as the cradle of the civil rights movement. Throughout our history, Atlantans from Martin Luther King, Jr. to the trailblazers of Sweet Auburn not only helped birth the modern movement to create justice for all but had a laser focus on economic empowerment for everyone

When I ran for mayor, I made a commitment to end the tale of two cities in Atlanta. I promised to fight for an economy that grew in a balanced way, so that workers could get trained for family-sustaining jobs, small businesses could participate in our city’s growth and all of Atlanta could rise together. More plainly, I wanted to ensure that Atlantans from all backgrounds have a shot at fully participating in Atlanta’s economy. Atlanta is one of the most diverse cities in America, so the economic mobility of all Atlantans is of extraordinary importance to me. It matters to President Joe Biden, too. In fact, President Biden and