ST. PAUL, Minn. (AP) — Minnesota's bank account is projected to run up a $1.87 surplus over the next two years, which will drive calls for new spending, tax cuts or most likely a mix.

The Department of Minnesota Management and Budget provided the figure Friday in an updated economic forecast. It sets the parameters for upcoming debate over a new two-year budget that Gov. Mark Dayton and the Legislature will adopt this spring.

The surplus is substantially more than the $1 billion estimated in December.

Dayton said on Thursday that he hopes to earmark some money for debt costs on a possible $850 million public works construction bill. He has also mentioned nursing homes as a beneficiary.

Republicans who run the House have signaled they'll seek a healthy chunk for tax cuts.

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