Minnesota Management and Budget (MMB) delivered the delayed February budget and economic forecast today. While MMB projects a $456 million surplus for the FY 2026-27 biennium, this projected surplus is now $160 million lower than estimates from the November forecast. In a statement, MMB said the “budget outlook has been adjusted downward amid significant near-term economic and fiscal uncertainty” and that “higher forecast inflation results in increases in projected revenues and expenditures”.
The projected deficit for the FY 2028-2029 biennium has grown to $5,995 billion, $852 million worse than November estimates. MMB stated further in its statement that “shifting policies at the federal level introduce significant uncertainty to the projections”.
The forecast provides a detailed update of the state’s financial health that sets the stage for lawmakers to develop a biennial budget for the FY 2026-2027 biennium.
