That's an improved forecast for the next two-year budget cycle.
Minnesota budget officials are projecting a $1.3 billion surplus in the current two-year budget period thanks to an improving economic outlook.
Minnesota Management and Budget announced the forecast Thursday morning ahead of a more detailed presentation later in the day. Democratic Gov. Tim Walz and legislative leaders from both parties plan to comment on the outlook afterward.
The improved forecast helps set the stage for spending debates in the 2020 legislative session, which convenes Feb. 11. Tops on the session's agenda will be crafting a public works borrowing package, also known as a bonding bill. But lawmakers are bound to have ideas for what to do with the extra money.
The budget agency says a better-than-expected close to the last budget period, an improved revenue forecast, and a small decrease in estimated spending are contributing to the projected surplus.