ST. PAUL, Minn. (KFGO/Learfield) – Minnesota’s budget and economic outlook remains stable in the current biennium; however, structural budget challenges remain.
State officials are predicting a surplus of nearly $2.5 billion in the current biennium, but a $2.96 billion deficit for the 2028-29 budget.
The Minnesota Management and Budget Office says a better-than-expected fiscal year close and higher near-term revenue collections, partially offset by increased spending estimates, result in a projected surplus.
The report says higher healthcare costs and slow economic growth drive an increased structural imbalance in a couple of years.
Lawmakers will use this forecast to shape policy for the next legislative session.
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