Minnesota Budget Outlook Shifts From Balance to Shortfall

Minnesota is projected to finish the current two-year budget cycle with roughly three-billion dollars remaining in its general fund.

Minnesota Management and Budget says the outlook tightens in the following biennium, when the state is currently projected to face a shortfall of about 55-million dollars.

Deputy State Budget Director Travis Bunch says revenue is growing at approximately two percent annually, while spending is increasing slightly faster at about 2.2 percent.

The projections remain subject to change. The state’s next major financial update will be the November budget forecast. The governor elected this fall will use that forecast to develop a proposed state budget expected in February.

The current budget cycle covers fiscal years 2026 and 2027, according to Minnesota Management and Budget.