Lakeville's Thompson Talks State Budget Surplus

On Dec. 1, Minnesota Management and Budget Commissioner Jim Schowalter released the state's November budget forecast, and it shocked most Minnesotans.

Schowalter projects a surplus of $876 million for the current biennium which ends in 2013. The surplus was unexpected, and State Sen. Dave Thompson (R-District 36) of , said the projection was "certainly a step in the right direction."

The surplus, in accordance with current law, will be used in a few different ways. Roughly $255 million will be used to bring the state's cash-flow account back to a total of $350 million, and the other $621 million will be used to bring the state's budget reserves to a total of $648 million. 

And while Thompson was encouraged by the surprise surplus, he was quick to point out that the Schowalter also projects another deficit for the next biennium.

"It is important to note that this same budget forecast predicts a $1.3 billion shortfall next biennium. We are still not out of the woods, and we still need significant changes in the way Minnesota does business in order to avoid these repeated shortfalls," Thompson said in a statement.

Thompson said about 80 percent of the surplus is directly attributed to changed Republicans lobbied for and made to the Health and Human Services budget in the last session.

"Governor (Mark) Dayton and DFLers in both houses of the legislature opposed most, if not all of these reforms," Thompson said. "Less government spending, holding the line on taxes, and reducing business regulations lead to prosperity and job creation."