Dave Thompson Shares Thoughts on Increase to State Surplus

Fiscal news for Minnesota keeps getting better.

On Wednesday, Feb. 29, Minnesota Management and Budget Commissioner Jim Schowalter announced that the budget forecast for the state continues to bear fruit, showing a positive balance of $323 million for the 2012-2013 biennium. That's in addition to the $876 million surplus reported in the November forecast.

State Sen. Dave Thompson (R-District 36), of Lakeville, weighed in on the good budget news.

“Fiscal responsibility and sensible government works," he wrote in a statement. "Republicans’ commitment to policies encouraging job creation in the private sector and spending restraint has put Minnesota’s economy on the road to recovery."

All told, the state has a whopping $1.2 billion surplus, though, the money is basically spent. According to the Star Tribune, state still needs to restore the budget reserve of $653 million, and after that, the state owes Minnesota's public schools more than $2 billion.

Nearly two-thirds of the budget surplus comes from lower-than-expected costs in health care and slightly lower school enrollment, the Star Tribune report said.

The economic forecast also reported that the state's revenues are flat, but spending is in line with what it is taking in, and that Minnesota's unemployment rate is dropping and at a rate faster than the national average.

“While this is great news, it is also an indicator that we need to continue to be prudent managers of the tax payer dollar and look for ways to strengthen Minnesota’s business climate," Thompson said. "I’m focused on legislation that reduces the size of government.”