Minnesota Budget Reserve Bumped By $150M
ST. PAUL, Minn. (AP) — Minnesota’s defense against future budget shortfalls is a bit sturdier.
State finance officials said Tuesday they deposited $150 million more into Minnesota government’s main rainy-day account. It brings the total to $811 million, with more money automatically going into it if there are future surpluses.
With backing from Gov. Mark Dayton, the Legislature approved the set-aside this spring but it didn’t take effect until July 1.
Minnesota also as a $350 million cash-flow account that lawmakers have turned to in lean times.
The cushion could help cushion the blow if deficit days return. But the size of the reserve is also important to Wall Street bond houses when they set the state’s credit rating, which affects interest rates when the state borrows for construction projects.
(© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)