Minnesota raises budget balance forecast to $1.65 billion

Reuters News
Posted: Feb 28, 2017 12:46 PM

(Reuters) - Minnesota on Tuesday increased the projected balance at the end of its next two-year budget cycle by $250 million to $1.65 billion, while warning that uncertainty over U.S. economic policy poses "significant risk."

The state now expects the current fiscal biennium to end on June 30 with a $743 million balance, $88 million higher than previously forecasted. It also increased the revenue estimate for the fiscal 2018-19 biennial budget by 0.7 percent to $45.66 billion, mainly due to stronger individual income taxes.

"Considerable uncertainty remains about which proposed U.S. economic policy changes will be enacted in the near term and their impact on the economy," said the Minnesota Management and Budget Department forecast, pointing to potential changes to policies on trade, immigration, healthcare and business investment.

(Reporting by Karen Pierog in Chicago; Editing by Matthew Lewis)