The state’s government is expected to have less money than previously predicted for lawmakers to allocate when they return to the Capitol Jan. 14 and begin crafting a budget for the next two fiscal years.
Minnesota Management and Budget officials released the November 2024 Budget and Economic Forecast Wednesday detailing the expected financial future.
It shows a $1.1 billion decrease from the prior estimate in February which had predicted a $1.7 budget billion surplus during the 2026-27 fiscal biennium that begins July 1, 2025. That surplus is now forecast to be $616 million.
The change was largely caused by projected reductions in income and sales tax revenues coupled with increased spending for long-term care and special education, which will contribute to what is expected to be a growing structural imbalance during the budget years to come.