Minnesota Projects $1.9M State Budget Surplus

Minnesota expects to end its fiscal 2016-17 biennium with a $1.87 billion budget balance, more than double the $865 million surplus projected earlier this year, the state reported on Thursday.

The rosier forecast was attributed to higher sales and corporate tax collections and lower spending on human services, along with a $682 million carryover balance from the fiscal 2014-15 biennium, which ended June 30.

Under state law, $71 million of the $1.87 billion balance would be allocated to environmental funds and $594 million would flow to the budget reserve, leaving an available balance of $1.2 billion.