ST. PAUL, Minn. - Minnesota budget officials estimated a surprise $876 million surplus for the rest of the state's two-year budget on Thursday, easing fears of another bruising political fight just months after partisan deadlock over how to close the last budget deficit led to a partial shutdown of state government.

Predictions at the Capitol had been pessimistic, with red-ink estimates ranging from $500 million to $1 billion. But revenues came in $358 million higher than expected and spending was $205 million below earlier estimates, budget officials said.

“This is obviously good news and a helpful break from recurring budget gaps,” Jim Schowalter, the state’s budget commissioner, said in a statement accompanying the forecast. “It’s also a reminder that Minnesota still has some significant strengths — above-average economic performance and the discipline to quickly stabilize its finances. Future risk remains, but at least we now have a cushion.”

The forecast wasn’t all sunny. It projected a deficit of $1.3 billion for fiscal years 2014-15.