Stable budget outlook projects $3.7 billion surplus now, no deficit in next biennium

The projected surplus for Fiscal Years 2026-27 is now higher than it was in the November estimate, and no deficit is projected for the next biennium.

“Minnesota’s budget outlook has improved amid significant near-term economic and fiscal uncertainty,” according to the February forecast released Friday by Minnesota Management and Budget.

The 2026-27 biennium projected balance is now $3.7 billion, $1.3 billion higher than November estimates. “A slightly improved economic outlook drives a higher revenue forecast largely driven by more volatile sources of revenue,” according to MMB.

However, spending growth is forecast to outpace revenue growth in the projections through Fiscal Year 2029. The projected General Fund balance for the 2028-29 biennium is now $377 million, but “a significant structural imbalance remains. Shifting policies at the federal level and missing or incomplete data due to recent federal government shutdowns introduce significant uncertainty to the projections,” according to MMB.

Read more at Session Daily.

Session Daily

House elections committee stalls on absentee ballot voter verification bill (3/18/2026 7:33:00 PM)
Agriculture committee scratches bill that would ban cat declawing (3/18/2026 7:25:00 PM)
Confidentiality protection expansion OK'd for health care providers in wellness programs (3/18/2026 6:54:00 PM)
Proposed legislation aims to give renters credit where credit is due (3/18/2026 6:16:00 PM)
Sales of bigger, louder, higher fireworks fizzles out in committee (3/18/2026 5:57:00 PM)
Transportation panel sends suicide prevention bill to House Floor (3/18/2026 5:01:00 PM)
Read all about it: approval given to possibly shorter wait times for e-book access (3/18/2026 4:33:00 PM)
Capping concert ticket resale prices, adding price transparency get commerce panel approval (3/18/2026 2:16:00 PM)
Financial support sought to address nursing workforce needs across Minnesota (3/18/2026 1:06:00 PM)
Bill would require training for assisted living workers in case of residents' fall (3/18/2026 12:19:00 PM)
Park in a transit or bike lane and you could get busted by a bus (3/17/2026 7:03:00 PM)

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