Minnesota projects massive $17.6 billion budget surplus

@ap.news Minnesota Gov. Tim Walz speaks to the media Wednesday, Nov. 9, 2022, in St. Paul, Minn. Minnesota democrats completed a trifecta Wednesday by winning both houses of the legislature to take full control of state government for the first time in eight years. (AP Photo/Abbie Parr)

By STEVE KARNOWSKI and TRISHA AHMED Associated Press
ST. PAUL, Minn. (AP) — Minnesota lawmakers will head into the 2023 legislative session with a massive $17.6 billion projected budget surplus.

Minnesota Management and Budget says “strong collections and lower-than-projected spending” are contributing to the surplus in the current two-year budget period, which runs through June. The agency also expects that economic headwinds and lower expected growth for the next two-year budget period will be balanced by a large leftover surplus and healthy net revenues.

The agency’s previous forecast was for a record $12.1 billion. Democrats will take full control of Minnesota government when the 2023 Legislature convenes on Jan. 3.