Dakota Times

The latest Office of Management and Budget (MMB) forecast provided encouraging news for additional investment in Minnesota families and noted the continuous decline in the state’s unemployment rate.

The MMB released its February revenue forecast, offering a positive outlook for Minnesota’s financial future. According to the report, the state has a $1.513 billion surplus for the remainder of the 2020-21 budget cycle, which is $181 million more than November's projections. The forecasted growth of the economy appears to be slower than last year but projects to be steady.

“Today’s forecast is positive news for this state, and shows that there is no reason that Minnesotans shouldn’t expect to see this billion-dollar surplus back in their pockets,” said Sen. Dan Hall. “Investing in Minnesotans is good for this state. Over the past few years, we’ve worked hard to provide relief to millions of Minnesotans, and this surplus illustrates the positive effect. This session, we will continue to prioritize tax relief and reform investing in Minnesota families rather than continuing to grow our bureaucracy.”

The MMB's report additionally noted that unemployment rates are reaching near all-time lows across the state.

“In December 2019, the U.S. unemployment rate reached 3.5%, its lowest rate since 1969, and is expected to reach a cycle low of 3.3% in late 2020 and early 2021,” read the report. “Strong demand for workers has tightened the national labor market. In 2019, the number of unemployed people in the labor force fell, as did the number of job openings, keeping the ratio of unemployed jobseekers to job vacancies nationwide at 0.9.Minnesota’s steady economic performance continues, while the state’s labor market is slowing. Statewide, low unemployment and strong demand for workers support growth in total Minnesota wage income and wages per worker.”