Minnesota Management and Budget (MMB) recently released the state’s budget forecast for fiscal year 2026-27 painting the picture of how the state is fiscally situated both now and in future years. This budget estimate will serve as the backbone for fiscal planning and decision-making by legislators at the Capitol this legislative session.
The FY 2026-27 projected balance is now $3.7 billion, $1.3 billion higher than the last forecast given in November. According to MMB, “this slightly improved economic outlook drives a higher revenue forecast largely driven by more volatile sources of revenue. Spending growth outpaces revenue growth through projections for FY 2029. The projected general fund balance for the FY 2028-29 biennium is now $377 million; however, a significant structural imbalance remains. Shifting policies at the federal level and missing or incomplete data due to recent federal government shutdowns introduce significant uncertainty to the projections.”
Public Policy SpecialistTara is an effective advocate for complex policy issues and has extensive experience in legislation and public policy.