St. Paul, MN (NNCNOW.com) --- Minnesota is reporting a healthy projected state budget surplus after nearly a year in deficit.
The surplus is just over one billion dollars.
Just 10 months ago the state reported a near 630- million dollar deficit.
The Minnesota House and Senate passed a two billion dollar tax increase last session in an attempt to stabilize state finances and the changes took place in July.
The first dollars raised through the new taxes will be used to pay back to K through 12 school districts from which the state borrowed money to make ends meet.
An additional 15 million will be transferred to the state airports' fund and after these repayments, the final forecast balance should be around 825-million dollars.
"The principal reason for this dramatic improvement is a stronger than expected growth of our state's economy. That credit belongs first and foremost to the people of Minnesota." Said Minnesota Governor Mark Dayton.
The governor has said he will not propose any modifications in the current two-year budget until he sees a need with the later forecast.