Minnesota's budget forecast shows improvement, $3.7B surplus projected

ST. PAUL, Minn. (FOX 9) – Minnesota’s budget and economic outlook has shown improvement since the last budget forecast, Minnesota Management and Budget (MMB) said Thursday. 

The 2024-25 biennium is now projected to end with a surplus of $3.715 billion, which is an increase of $1.324 billion compared to the projections in November, MMB said. However, a budget deficit does loom. 

“The near-term economic outlook has improved, with growth expected to persist through 2027,” MMB’s website states. “Higher collections so far this fiscal year raise the current biennium forecast for all major tax types. Corporate tax revenue shows the largest change, driven by higher-than-expected corporate profits through the forecast horizon. Spending estimates are largely unchanged from November.”

MMB added, “The higher revenue forecast throughout the FY 2024-27 planning horizon results in improvement to the structural budgetary balance, but spending is still projected to exceed revenue through FY 2027.”

Every two years, Minnesota politicians create a state budget, which they passed last spring. The projected budget surplus will allow Democrats to continue to shape state priorities as the party deems necessary, having control of the House, Senate, and governor’s office.

This is a developing story. Officials plan to hold a press conference at 8:30 a.m. Watch it live in the player above.