On Thursday, March 6, Minnesota Management and Budget (MMB) released its annual February revenue forecast, providing information and an outlook for the state’s financial picture.
Minnesota’s financial position has worsened in the past few months, independent of any of the proposed changes at the federal level. The latest forecast has decreased by $160 million by the end of 2026, while the projected deficit has grown to $6 billion by 2029. The forecast numbers do not account for any new spending, meaning that new spending bills passed this legislative session will further increase the deficit down the line.
“The latest budget forecast reveals a $6 billion deficit in Minnesota,” Senator Jim Abeler (R–Anoka) said. “It is time to prioritize our spending and stabilize our finances. We must focus on essential services like hospitals, nursing homes, care for persons with disabilities, education, and safe streets.”
Under the past two administrations, Minnesota’s government budget has nearly doubled from a $39 billion general fund budget in 2014 to $71 billion in 2024. Taxes and fees have increased by $10 billion, making life more expensive for nearly all Minnesotans, which has contributed to a weakened economy and an increased deficit. The state now has some of the highest individual taxes and the 46th worst state and local tax burden in the nation.
The February forecast will serve as a guide for the Minnesota Legislature in creating the upcoming two-year budget before the constitutionally mandated session deadline on May 19, 2025. Click here to read the full MMB November Budget and Economic Forecast update.