Senator Dahle Reacts to State’s Budget Forecast
“The surplus announced in the February Forecast shows the importance of careful planning and responsible fiscal management. It shows our economy is stable, but that there is reason for caution as we prepare this year’s plans for tax breaks, education funding, and the rest of the legislature’s work.”
When Senator Dahle began his current term in 2013, our state was facing a $1 billion deficit. Today, our state is projected to have a $900 million surplus. This forecast shows how the work of the last few years to pass an honest budget, without gimmicks or borrowing, has created the confidence and stability necessary to strengthen Minnesota’s economic growth.
It is great news that Minnesota is finally out of budget deficits, but it is important to remember that the 2016 surplus does not represent ongoing revenue for the state, so we must be careful when applying it toward ongoing financial commitments.
In addition, to ensure stable long-term economic health, we must make sure our budget reserves are robust. We currently have $1.597 billion in our budget reserve to cushion the state from future economic downturn.
Sen. Dahle is committed to working with the House and the Governor in developing a budget that evaluates all options to position Minnesota for continued economic growth and maintain the shared goal of making the lives of Minnesotans better.