Officials Urge Caution After Announcing $2.4 Billion Budget Surplus

December 14, 2023

Minnesota Management and Budget (MMB) announced a projected $2.4 billion budget surplus for the upcoming legislative session when they released their November forecast last week. 

MMB Commissioner Erin Campbell said the current two-year budget is higher than previous projections, but cautioned that increased spending from the 2023 legislative session could result in a $2.3 billion budget shortfall in the 2026-2027 fiscal biennium. 

This forecast will have a significant effect on legislators’ priorities as they return to St. Paul for the second half of the biennium in 2024. The surplus suggests some spending could be on the table in the upcoming session, but the long-term deficit projection suggests that lawmakers will need to be careful when making decisions about the state’s finances. 

The forecast could affect MMA’s 2024 legislative priorities – some of which will have a direct fiscal impact to the state. 

“Some of the bills we are promoting will cost the state money, especially efforts to limit the use of prior authorization in public programs,” said MMA President Laurel Ries, MD, following the budget forecast. “But eliminating prior authorization for services that almost always gets approved, like outpatient chemical dependency treatment and medication-assisted treatment, will save everyone money in the long run and, most importantly, improve patient care.” 

The second half of the biennium is often considered a “short session,” because lawmakers convene about a month later and have no constitutional requirement to pass a state budget. 

The legislature is set to reconvene on February 12.