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| Date: | February 29, 2012 | | Contact Name: | Libbie Krueger | | Contact Phone: | 651.296.1388 | | Contact Email: | elizabeth.krueger@senate.mn | | For Immediate Release | |
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| STATEMENT FROM SENATOR DOUG MAGNUS ON FEBRUARY ECONOMIC FORECAST |
(St. Paul) – Today, Minnesota Management and Budget Commissioner Jim Schowalter announced an economic forecast that shows a $323 million improvement in the budget for the remainder of the 2012-13 biennium. When added to the $876 million forecast improvement reported in November, the state now has a total surplus of almost $1.2 billion. A year ago at this time, Minnesota faced a $5.2 billion deficit.
After learning about today’s budget forecast Senator Doug Magnus (R – Slayton) offered the following statement:
“This is good news for Minnesota. We are happy with today’s budget forecast; it proves that a responsible approach to government does work. We used a steady hand to deal with the budget and improved the state’s financial outlook. Now that we’ve filled the cash flow account and the budget reserves, we can start paying back the school shift.”
Under current law, the surplus is first dedicated to restore the state’s cash flow and reserve accounts. With the additional funds announced today, the state will pay $318 million in school shift repayments beginning in March. The $318 million in school payments is almost half of the amount borrowed to solve the state budget deficit for 2012-13.
Along with a projected surplus, the forecast also reported lower than average unemployment rates in Minnesota. State Economist Tom Stinson reported a statewide December unemployment rate of 5.7 percent versus an 8.5 percent rate nationally.
“Minnesota’s jobless rate is lower than the nation’s average.” Magnus added. “It’s encouraging to see Minnesotans getting back to work. However, we have more to do. We will continue to support policies that create jobs and put Minnesota’s economy on a forward path.”
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