ST. PAUL, Minn. (KTTC) -- The Minnesota Management and Budget office released the November Economic Forecast Thursday morning.
State economists say the Minnesota is working with a $1.3 billion budget surplus for 2019.
The Commissioner of Minnesota Management and Budget Myron Frans said having that money for a rainy day fund is crucial.
"Budget reserves reduce the need for large immediate spending cuts or tax increases giving money states the time they need to consider ways to maintain needed services despite pressed revenues in an economic downturn," Frans said.
Minnesota Governor Tim Walz (DFL) is crediting a strong state economy for producing that surplus.
"Minnesota's economy is working cause Minnesotans are working and it's working because we've made smart budgeting decisions we've been disciplined. We've kept our eye on the long term and invested in the things that make our states grow," Gov. Walz said.
With the surplus coming as good news for many, Republican Senator David Senjem of Rochester says maybe its time to cut back on taxes, notably social security taxes.
"I would say that we're sorta in an opportunity zone here with respect to looking at this surplus and how we might apply it frankly make the tax climate in Minnesota just a little bit better," Sen. Senjem added.
While Minnesota's economy and revenues continue to grow caution remains for planning estimates for the future. All eye's are also on February's budget number forecast, that'll come out as a lawmakers begin the next legislative session.