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Minnesota predicts $876 million surplus

Everyone was anticipating another deficit, but early reports this morning are saying that the new forecast calls for an $876 million surplus.

All the predictions were for yet another big state deficit for the next two-year cycle, but early reports this morning are saying that the new forecast calls for an $876 million surplus for the state of Minnesota.

The Star Tribune and MPR, after talking to highly placed sources in advance of this morning’s 11:30 a.m. official announcement, are reporting the surprising surplus.

At least some of the surplus will go to replenishing the state’s depleted reserve fund, which was used to help balance the recent state shortfalls.

Sources said there still appears to be a deficit in the following two-year cycle.

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The paper said sources consider this November forecast a signpost, but the Legislature will look more closely at another forecast coming in February, soon after the new Legislature convenes.

Check back later for news developments and analysis by Doug Grow.