Minnesota’s expected budget surplus increases to $1.65 billion

The forecast is up from the last projection of $1.4 billion.

Governor Dayton gives his State of the State Address at the Capitol on Wednesday.

Daily File Photo

Governor Dayton gives his State of the State Address at the Capitol on Wednesday.

Ryan Faircloth

The Minnesota Management and Budget office released the state’s latest budget and economic forecast Tuesday, detailing an increased budget that could be at risk due to federal uncertainty.

The state is now estimated to have $1.65 billion in the next biennium, up from a $1.4 billion November projection.

But according to the report, unknown federal policies could put the forecast at “significant risk.”

The risks included U.S. policy uncertainty, inflation and international trade.

At a press conference, Gov. Mark Dayton said he was satisfied with the budget increase, and said his budget proposals from the start of the legislative session will be revised to reflect the new forecast.

But Dayton urged legislators to be cautious of the risks posed to the budget at the federal level.

“The uncertainty surrounding this budget forecast demand extreme caution and restraint from my administration, the Legislature and various affected interest groups,” he said.

Dayton attended the National Governor’s Association conference last weekend, where he said meetings with President Donald Trump and his administration brought “unprecedented degrees of uncertainty, anxiety and confusion.”

“Administration officials offered only generalities about health care reform, trade policies and other crucial matters,” he said, adding officials contradicted one another on further details.

With the surplus, Dayton said he may now consider putting some of the money into the state’s reserve fund to account for the risks.