Minnesota’s economic outlook is ticking upward, with the state budget agency forecasting Tuesday a $1.65 billion budget surplus for Gov. Mark Dayton and state lawmakers to work with in the current legislative session.
That’s up from a December estimate of $1.4 billion. The projected surplus is the main measure by which Dayton and lawmakers will make decisions about state spending levels for the next two years.
Budget officials said that while the state’s economic situation has improved, “federal policy unknowns create significant risk” for the state’s finances. That’s a nod to uncertainty around the priorities and actions of the new Trump administration and Republican majorities in the U.S. Congress.