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.
The Portland Trail Blazers tamed the Minnesota Timberwolves Monday night, 111-84, in NBA Summer League action. Center Yang Hansen made a heroic return after missing the last game due to an illness, while two-way guard Chris Youngblood turned in a much needed all-around performance to pace Portland. With the Blazers 0-2 in summer league, the team came out with a sense of urgency to put a complete game together and grab their first win in Las Vegas.
After a slow start against Minnesota, Yang really took command in the second half, imposing his will on both ends of the floor. He finished the game with 18 points on 7-8 shooting, 10 rebounds, 5 assists, and 4 turnovers (3 in the first half). He still has a ways to go, but when he gets into a comfortable rhythm, good things happen. Youngblood poured in 20 points on an efficient 5-11 shooting, to go with 5 rebounds, and 3 assists.
Donovan Williams led Minnesota with 21 points. Center Rocco Zikarsky finished with 18 and 6 rebounds. G league point guard Zyon Pullin scored 16 and dished out 10 assists, 4 rebounds, and 2 steals. He was the only Minnesota starter with a positive plus/minus.
Yang got off to both a good and bad start, recording 2 points, 2 fouls, 2 turnovers, a rebound, and an assist in the first 3 minutes of the game. That sent him to the bench early. His center counterpart for the T-Wolves, 7’3”, 20-year-old Australian Rocco Zikarsky came out on fire. He scored 10 points in the first quarter, including two shots behind the arc. Youngblood provided a much needed good shooting start, while newly signed former lottery pick point guard Kira Lewis Jr. came off the bench with instant offense – 5 points in 4 minutes. The Blazers ended the first quarter up 24-17.
Youngblood, one of the Blazers on a two-way contract, has a reputation as a sharpshooter. However, coming into tonight’s game he was 1/13 from three through the first two games. He put together another solid run in the second quarter to lead Portland with 17 points, while helping double their lead at the half, 58-44.
The Blazers continued to dominate the third quarter. Yang punished Minnesota when they went to a smaller lineup. When Yang gets comfortable in the flow of a game, his confidence level rises. You can see the wheels turning in real time when he makes plays. He tries to parlay that into as much production as possible. He even impressed with his ability to bring the ball across half court a few times. He feasted in the paint and on the boards, registering 10 points in the third quarter alone. Blazers guard Quincy Olivari heated up with 9 points in the quarter.
The fourth quarter started with the Yang Hansen Show. He made a couple of impressive passes and drove the lane for a rim-rocking dunk! He was gassed after stuffing the stat sheet in the second half. He was subbed out with 6 minutes left and began pounding the Gatorade on the bench. After a tough start, Yang regrouped to play a very disciplined game.
The Blazers (1-2) get a couple days off, then return to action on Thursday when they take on the Denver Nuggets at 7 p.m. PDT. That game will be available Prime Video, BlazerVision and KUNP.
(FOX 9) – Minnesota is joining a legal challenge targeting the largest media merger in history, arguing that it would ultimately be a bad deal for customers.
AG Ellison joins lawsuit to block Warner Bros.-Paramount merger
What we know:
Minnesota Attorney General Keith Ellison has joined a coalition of 11 other attorneys general, filing a lawsuit to stop the $110 billion acquisition of Warner Bros. Discovery by Paramount Skydance Corporation.
The suit alleges the merger would violate antitrust laws by creating a media conglomerate that would control nearly one-third of all U.S.-based theatrical movies.
The combined company would control about 27% of the market for wide-release theatrical films and basic cable channels. Only three distributors would control 75% of wide-release films, and four — including Disney, Universal, and Sony — would control 86%, the lawsuit alleges.
The lawsuit also points out that Warner Bros. is currently the second largest and Paramount the third largest in licensing basic cable channels, and together they would control 27% of that market. The merger would combine two of Hollywood’s five major film distributors and two of the five major basic cable companies, eliminating competition and harming movie theaters, cable distributors and consumers.
What they’re saying:
“Minnesotans deserve a fair and competitive marketplace, not one where a handful of giant corporations control what we watch, what we pay, and what choices we have,” AG Ellison said in a statement. “This would be the largest merger in media and entertainment history. It will raise prices, limit innovation, and reduce the variety of voices in media and entertainment. I’m taking action because this goes too far in consolidating power with a few at the expense of the public.”
What’s next:
The coalition has asked Warner Bros. and Paramount not to close the merger until after the judicial process concludes. If the companies refuse, the attorneys general plan to file a temporary restraining order to halt the deal.
The Source: Information provided in a statement from the Minnesota Attorney General’s Office.
WASHINGTON (7News) — The debate over the National Guard presence in the nation’s capital is intensifying after the Pentagon told 7News the Guard mission connected to President Donald Trump’s crime initiative could continue through Inauguration Day 2029 unless it is ended sooner by the president.
The development comes as one governor has decided to withdraw troops from Washington, while D.C. leaders are urging other states to do the same.
Minnesota Gov. Tim Walz is pulling his state’s National Guard members out of the District earlier than originally planned.
Walz’s office says its mission to support America 250 celebrations has concluded. The decision follows concerns about whether some Guard members were being used beyond the security mission tied to those events.
RELATED | Pentagon to keep National Guard activated in D.C. through Inauguration Day 2029
The D.C. Council is also pressing other states to reconsider their deployments.
All 13 councilmembers signed letters to the governors of Michigan and the U.S. Virgin Islands asking them to withdraw their National Guard troops from the District. Council leaders argue those service members were deployed to support the nation’s 250th anniversary events—not a broader federal public safety mission.
“They’re just doing their job, but it still hurts the city. It hurts our image. It creates resentment,” D.C. Council Chairman Phil Mendelson said.
SEE ALSO | 13-year-old boy shot and killed in Northeast DC home
“The letters were sent to two states that we were surprised when they decided to send the guard. Now, they sent the guard, as I understand it, to support the America 250 events. So it would be nice if they just kind of go back home,” Mendelson added.
According to the Joint Task Force overseeing the deployment, more than 5,100 National Guard members are currently assigned to the District, including troops supporting Freedom 250 events and other summer activities.
While Minnesota is ending its deployment, governors in states including Georgia and Mississippi have said their Guard members will remain in Washington to support the president’s mission.
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