St. Paul – State Senator Joe Gimse (R – Willmar), Chair of the Senate Transportation Committee, was delighted with the figures released yesterday from Minnesota Management and Budget office (MMB), showing positive cash flow estimates to the sum of $324 million.
“I think it is time we declare, unequivocally, that the fiscal policies enacted by my colleagues and me in the legislature have been tremendously successful for Minnesota’s checkbook. What once was a projected $184 million shortfall has turned into a $324 million increase. It is also important to keep in mind that this news comes on the heels of last week’s revelation that the state saw an additional increase of $336 million in collected revenue.”
The updated cash flow estimates are a combination of increases in revenue and lower levels of projected spending. The report also highlights that the state’s line of credit, which was extended last June for any Fiscal Year 2012 cash needs, was never used. The Director of Budget Planning and Operations for MMB stated: “Positive cash flow results create ‘breathing room’ in FY 2013 outlook.” MMB will continue daily monitoring to detect any significant variances in cash flow and will release new projections based upon the November forecast.
“When I take a moment to reflect upon the economic calamity that loomed over our new majority in January, 2011, I am so proud and privileged to have played a role in reversing the status quo and bringing fiscal restraint to St. Paul. The decisions we made were not easy, nor were they made in haste, but have continuously proven as integral components towards putting Minnesota on solid financial ground. I am eager to continue our work moving forward because the healthiness of our state’s finances is in the best interests of all Minnesotans.”