That estimate released Thursday means the state can fully pay the remaining IOUs to public schools that piled up during tougher budget times. And it leaves $825 million left for lawmakers to work with during their election-year session.
The Department of Minnesota Management and Budget's comprehensive review of tax-and-spending patterns will help set expectations for the session that starts in February.
Gov. Mark Dayton and lawmakers from both parties planned to address the report at news conferences.
The report has an immediate impact for schools, which will receive $246 million in payments that had been previously deferred. The state is also replenishing an airport account from which lawmakers diverted $15 million five years ago.