ST. PAUL, Minn., Dec. 1 (UPI) -- Economists had some good news for Minnesota: The budget will have a surplus instead of a deficit for the remainder of its two-year cycle.
The economists' forecast that the state will have $876 million more than it was originally forecast to spend for the rest of the biennium, the St. Paul Pioneer Press reported.
"Surprise!" said State Management and Budget Commissioner Jim Schowalter said during a news conference Thursday where he released information about the November forecast for 2012 and 2013.
Revenues were $358 million more than expected and expenditures $205 million less than estimates for fiscal year 2011, Schowalter said. When combined with an estimated $348 million less in expenditures for 2012-13, the total is a $876 million balance, good news when a deficit was originally expected.
Minnesota has endured a four-year string of budget deficits.
By law, the balance goes to the state's cash flow account and budget reserves, Schowalter said.
"This is obviously good news and a helpful break from recurring budget gaps. It's also a reminder that Minnesota still has some significant strengths -- above average economic performance and the discipline to quickly stabilize its finances. Future risk remains, but at least we now have a cushion," Schowalter said.
Not all news was rosy. He said the November forecast indicated a projected deficit of $1.3 billion for fiscal years 2014-15.
