On Tuesday, Minnesota Management and Budget (MMB) released its November 2020 Forecast projecting a $641 million surplus. This is an improvement of $2.955 billion compared to deficit estimates published at the end of October. This change is driven by a $1.912 billion increase in forecasted revenues and a $1.058 billion decrease in forecasted expenditures. However, a $1.273 billion budgetary shortfall remains for FY 2022-23.

“Today’s budget forecast is more positive than anticipated from the previous update just a few months ago,” said Senator Ruud (R-Breezy Point). “As we approach crafting a two-year budget, the Senate will continue to advocate for government restraint. Minnesota continues to grapple with COVID and the financial fallout it has created. As families and businesses struggle with their budgets, our responsibility is to ensure that their government is run efficiently. As we approach the upcoming session, I look forward to returning to St. Paul and working with colleagues to ensure that Minnesotans continue to have opportunities to succeed.”

On the economic front, employment in Minnesota is 184,000 (6%) below the levels in February 2020, resulting in an unemployment rate of 4.6% in October 2020. It’s important to note that the latest employment decline has occurred due to Minnesotans leaving the labor force, with 107,000 Minnesotans leaving the labor force since February 2020.