$1.038B Surplus Reported by Department of Finance

The state of Minnesota will finish the 2006-2007 biennium with a surplus of over $1 billion, according to a report by the Minnesota Department of Finance.  Additionally, the 2008-2009 biennium’s projected surplus has also been revised upward by $394 million, bringing the projected balance going into the next biennium to $2.17 billion.In a statement issued by the Department of Finance, Commissioner Peggy Ingison stated, “Minnesota’s economy is performing well and it’s been a while since we’ve been in such a positive position. Ending the 2006 legislative session with a balance for the FY 08-09 biennium helped put us in good shape for the upcoming budget.”

The projected surplus for the current biennium triggers a Minnesota statute enacted during the Ventura administration that makes the money available for tax rebates.  The legislature would, however, have to approve any rebates to taxpayers.

While the numbers look good, Commissioner Ingison urged caution.

“The last thing we want to do is adopt a budget that will create a shortfall when we begin considering the 2010-11 budget in a little more than two years,” she said.