CHICAGO — Minnesota added $150 million to its budget reserves at the start of the fiscal year July 1, bolstering the fund to $811 million.
The fund previously stood at $653 million. The infusion of funds was due to legislation passed by lawmakers during their spring session. In addition to the $150 million increase, a portion of future forecasted budget balances will also be dedicated to the reserves.
"Increasing the budget reserve helps the state manage economic and is viewed positively by the state's bond rating agencies," Minnesota Management and Budget Commissioner Jim Schowalter said in a statement.
Minnesota's reserve has ebbed and grown depending on the economy. Once flush, it was drained during the most recent economic downturn.
The state is planning an annual new-money GO sale for the summer but it's sizing and timing have not been announced. The state's $5.7 billion of general obligation bonds carry ratings in the high-double-A category.
