Minnesota Management and Budget released the February 2025 Budget and Economic Forecast on March 6th, indicating a shift in the state’s fiscal outlook. The projected budget surplus for Fiscal Years 2026-2027 has decreased by 26% since November 2024, dropping from $616 million to $456 million. More concerning is the projected budget deficit for Fiscal Years 2028-2029, which has increased to $6 billion, an $852 million rise over previous estimates.
The report suggests that at this critical point, the Legislature should focus on balancing efforts to reduce unnecessary spending while avoiding new or additional taxes. Additionally, it emphasizes maintaining a business-friendly environment that supports Minnesota’s Main Street businesses.
