Minnesota
Minnesota budget surplus forecasted at $616 million, but warning signs linger
ST. PAUL, Minn. — ST. PAUL, Minn. (WCCO) Minnesota is expected to have a $616 million surplus in the next two-year budget, state officials said Wednesday, but there is a looming $5 billion deficit in future years—teeing up a debate in the legislature about how to rein in spending to stave off that projected shortfall.
That surplus for the next biennium, which covers fiscal years 2026 and 2027, shrunk by $1.1 billion compared to what officials anticipated at the end of the legislative session this year. There is an anticipated structural imbalance—spending exceeding revenues—but a carryover balance blunted the impact and left some money on the bottom line for lawmakers when they put together the next budget when they return in January.
But in fiscal years 2028 and 2029, if the state keeps at this pace, it will see that deficit. Costs for special education and disability services are two drivers of increased spending, the forecast showed.
“Liike many other states, Minnesota is facing some significant economic and financial headwinds,” said Erin Campbell, commissioner of Minnesota Management and Budget, who cited a decline in COVID-era federal stimulus funding and related consumer and business spending, which boosted tax revenues in the state.
Campbell underscored that the decisions lawmakers make next year for the budget in the near term will impact the future years, so they should act wisely. Providing a budget forecast for a four-year window with this information allows them to course correct, she said.
“Not only do we have notice about a problem on the horizon, we also have ample time to take action and change the trajectory,” she explained.
Gov. Tim Walz told reporters “everything is on the table” to address the state’s financial outlook when the legislature returns in January, this time with a divided government. The House right now stands at a 67 to 67 tie, ending the DFL trifecta that defined the last two years.
Republicans in response to the forecast news were quick to place blame on Democrats for putting the state’s finances on the brink. They noted how Management and Budget last year warned of the mismatch between the amount of money the state was spending compared to the revenues it was raking in.
“The results that we saw with this budget forecast that came out today is exactly what House Republicans have been warning for the last two years would be the case,” said House Republican Leader Lisa Demuth, R-Cold Spring. “Democrats ignored those warnings from Republicans. They ignored the warnings from their own party’s administration, and now again, we have that moving $5 billion deficit projected just a few short years.”
Meanwhile, DFL leaders highlighted the state’s robust rainy day funds that exceed $3 billion and tempered some concerns about the state’s future finances, vowing a balanced budget and bipartisan work this year to get it done.
“I am confident that we will do what we have done over the previous cycles, which is to responsibly manage Minnesota’s budget to leave long term economic stability and surpluses,” said House Speaker Melissa Hortman, DFL-Brooklyn Park.
Demuth pledged that House Republicans were sending out letters to all state agencies to get information about how many full-time positions for which they get a state appropriation are unfilled; the terms of leases on any buildings that may not be fully used due to hybrid work; and how many “DEI employees” have been added across each department.
She suggested the latter should be streamlined, so staff aren’t doing duplicative work.
“Given the fact that we have a budget crisis on the horizon, we need to start working now to evaluate efficiency of our state programs and working to root out the hundreds of millions of dollars in fraud that is still likely going on across state government,” she said.
The next legislative session begins January 14. To see the full budget documents, click here.
Minnesota
Caribou Coffee in Minnesota launches value menu
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If you’re heading out to a restaurant, bar or coffee shop you may leave a tip. Here’s some advice on how much to give.
Caribou Coffee, a coffeehouse known for its handcrafted beverages made with real ingredients, is rolling out a new value menu at participating locations nationwide.
Beginning May 7, a company release stated, Caribou Coffee is serving Caribou Everyday Value Menu items, including to-go favorites and barista-made beverages.
The Everyday Value Menu features a curated lineup of Caribou classics now offered at prices starting at $2, the release stated. Guests will be able to enjoy signature items such as a small, specialty-grade brewed coffee, streusel-topped blueberry muffins and Caribou’s Cold Press, its version of cold-brewed coffee.
The value menu also introduces a new a bacon breakfast sandwich. It features crispy bacon, a cage-free scrambled egg patty and melted cheddar cheese layered on a toasted English muffin for $4. These prices are before tax.
“For many of our guests, their daily coffee ritual is a meaningful part of their day, and we know how much it matters that it delivers on quality, convenience and value,” Matt Reiter, chief commercial and strategy officer for Caribou said in a release. “At Caribou, we’re committed to creating a consistent, high-quality experience every time someone walks into one of our coffeehouses, with a range of options that fit into their day. The Everyday Value Menu expands the ways we do that and creates even more flexibility and value for guests.”
Caribou’s Everyday Value Menu includes:
- $2 small brewed coffee: A rotating selection of regular and seasonal coffees, brewed every hour to ensure maximum freshness
- $3 Blueberry Muffin: A blueberry muffin topped with streusel
- $3.50 small Cold Press coffee: Caribou’s cold brew coffee served over ice
- $4 Bacon Breakfast Sandwich: Crispy bacon, cage-free scrambled egg patty and melted cheddar cheese layered on a toasted English muffin
Caribou is also offering non-dairy customization at no extra charge, the release stated. Also, the Caribou Perks loyalty program allows guests to earn points with every Caribou purchase. These points are redeemable for free handcrafted beverages, bakery items and more.
Guests can order items from the Everyday Value Menu in-store, at the drive-thru and through the Caribou Coffee app for pickup or delivery.
Caribou Coffee serves handcrafted beverages and food items in more than 800 coffeehouses worldwide. It opened its first location in 1992. Focused on smart growth, the coffee shop operates and franchises coffeehouses across 11 countries.
Caribou Coffee locations in central Minnesota
- 2423 Division Street West, St. Cloud
- 4135 W. Division Street, St. Cloud
- 2510 W. Division St., St. Cloud
- 310 Lincoln Ave., St. Cloud
- 900 Cooper Ave. S, St. Cloud
- 201 Second Ave. S, Cold Spring
- 18157 Carson Court, Elk River
- 19425 Evans St. NW, Elk River
- 324 Lowell Ave. NW, Elk River
- 533 12th St. S, Sauk Centre
- 701 Third Ave. NE, Buffalo
- 800 Hwy 55 E, Buffalo
- 630 Ryans Way, Buffalo
- 110 First St. S, Sauk Rapids
- 880 18th St. NW, Sauk Rapids
- 2319 First St. S, Willmar
- 620 First St. S, Willmar
- 12495 Fifth Ave. N, Zimmerman
- 703 Northland Drive, Princeton
- 1500 Elm St. East, St. Joseph
- 520 Jefferson Blvd. NW, Big Lake
- 705 County Road 75 NW, Clearwater
- 1725 Pine Cone Road S, Sartell
- 113 S. Waite Ave., Waite Park
Minnesota
3M faces new lawsuit over ‘forever chemicals’ pollution in Minnesota
3M PFAS documentary: What the company knew about PFAS
The 3M Company has vowed to stop manufacturing PFAS chemicals by the end of 2025. The FOX 9 Investigators reviewed hundreds of hours of video depositions that shed new light on how company executives and scientists responded after first learning about the widespread contaminations.
(FOX 9) – The Minnesota Pollution Control Agency (MPCA) is taking 3M back to court, saying the company hasn’t done enough to stop PFAS pollution in local water.
Minnesota sues 3M for ongoing PFAS contamination
What we know:
The MPCA filed the lawsuit May 1, alleging that 3M is responsible for ongoing groundwater and surface water contamination, including industrial and stormwater discharges into the Mississippi River near its Cottage Grove facility.
In its argument, the state says some locations tested for PFAS showed concentrations as high as 310,000 parts per trillion, far above the state standard. The agency claims that although the specific site “does not routinely discharge to surface waters,” a heavy rainfall could lead to contamination entering the river.
The MPCA also alleges that 3M has not completed required cleanup work under a 2022 order and that its groundwater extraction system is not sufficient.
Minnesota previously sued 3M over PFAS, resulting in a 2018 settlement where the company paid $850 million to help clean up drinking water in the east metro. In 2024, 3M also agreed to pay $10.3 billion over 13 years to address PFAS in drinking water systems nationwide.
3M settlement water projects
Minnesota-based 3M is required to spend hundreds of millions of dollars to clean up PFAS-contaminated drinking water in the Twin Cities after the company dumped chemical waste in the east metro for decades. But with money from a 2018 settlement agreement running out, the company is now pushing back on whether all of those projects are reasonable and necessary.
Dig deeper:
In the lawsuit, the state is seeking civil penalties of up to $30,000 per violation per day, as well as increased cleanup efforts and compensation for damage to wildlife and natural resources.
A full copy of the complaint can be found below:
3M responds to lawsuit
The other side:
In its own court filing, 3M argues that some of the PFAS pollution came from testing firefighting foam made for the U.S. military, following Department of Defense requirements. The company says it warned the federal government about PFAS risks and should not be held responsible for contamination tied to military work.
3M wants the case moved from state to federal court, saying the environmental damage cited by the state is linked to its role as a government contractor.
The company stated it completed its planned exit from all PFAS manufacturing at the end of 2025.
The Source: Information provided by Minnesota Pollution Control Agency and 3M court filings.
Minnesota
Minnesota Senate approves bills to rein in ICE agents
Anti-ICE demonstrators protest outside St. Cloud-area hotels. See video
Protesters on Jan. 12 voiced frustrations about Immigration and Customs Enforcement agents being in St. Cloud by protesting outside local hotels.
The Minnesota Senate on Monday approved a package of bills aimed at reining in U.S. Immigration and Customs Enforcement officers after more than 3,000 federal agents descended on Minnesota for what the Department of Homeland Security called its largest immigration enforcement operation ever.
Swarming groups of federal agents racially profiled and arrested people in the streets during Operation Metro Surge, which ignited massive resistance and resulted in the killings of Renee Good and Alex Pretti, two U.S. Citizens.
“All we want are safe communities and the fair treatment under the law,” said Sen. Ron Latz, DFL-St. Louis Park, and chief author of the bill package. “The way ICE agents and Border Patrol agents went about (immigration) enforcement was an absolute abuse of our Constitution. It contravened our constitutional principles. It was without warrants. It was stopping people without lawful basis. It was arresting people without probable cause. It just crossed so many constitutional lines.”
The Minnesota Senate is controlled by Democrats, who have made Operation Metro Surge recovery and accountability a top issue. The Minnesota House is deadlocked between Republicans and Democrats, and Republicans have largely opposed Operation Metro Surge-related bills this session. The legislative session ends on Sunday.
The bill passed 34-33 in the Senate with no Republican votes.
The package includes a bill to allow Minnesotans to sue federal agents in state court if their constitutional rights are violated.
For much of American history, people have had the ability to sue federal agents, but the U.S. Supreme Court has rolled back that precedent. The high court has suggested that only Congress can authorize lawsuits seeking money from federal officials.
Some legal scholars believe state legislatures, too, can authorize lawsuits against federal officials for violating the Constitution. The Illinois Legislature last year passed such a law, and the Trump administration promptly sued, arguing the Constitution’s supremacy clause limits states from enacting policies that conflict with federal law.
The Trump administration has said that federal agents have “absolute immunity” if they are conducting immigration enforcement. Legal experts say that immunity doesn’t extend to unreasonable or excessive use of force. Hennepin County Attorney Mary Moriarty charged one ICE officer with assault for allegedly brandishing a weapon and is weighing charges against the agents who killed Pretti and Good.
The package of bills also includes banning law enforcement from wearing face masks, and it creates a “civil right of action” in shootings in which a person can be held civilly liable if they shoot someone and fail to provide aid to the victim.
It also prohibits federal immigration agents from schools, hospitals, childcare centers and courthouses.
Senate Republicans say the package would cost taxpayers hundreds of thousands of dollars in potential litigation because the state will likely be sued. States cannot regulate immigration law, and Republicans argue the bill package does just that.
Minnesota Reformer is part of States Newsroom, the nation’s largest state-focused nonprofit news organization.
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