Minnesota Faces Worsening and Uncertain Budget Forecast

St. Paul, MN (KROC-AM News) - Minnesota lawmakers were presented today with an uncertain and worsening budget outlook.

The report forecast that the more than $600 million projected budget surplus for the next two-year budget cycle has shrunk by about $160 million and it now stands at a little over $450 million. The change is being attributed to higher forecast inflation resulting in both increases in revenues and expenditures.

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Meanwhile, the long-range budget deficit has grown significantly since the previous state revenue forecast was released last fall. The Minnesota Office of Management and Budget is now projecting a budget shortfall of just under $6 billion for the 2028-2029 fiscal years.

The report, which is a key piece of information for state lawmakers as they work to assemble the next state budget, sites significant uncertainty due to shifting policies at the federal level, including the impact of the tariffs being imposed by President Trump.

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