Overview
- Minnesota Management and Budget projects a $2.465 billion surplus for 2026–27 and a roughly $2.96–$3.0 billion deficit in 2028–29.
- The outlook improves on March’s forecast, which showed a $456 million near‑term surplus and about a $6 billion later deficit, reflecting enacted spending restraint and stronger recent revenues.
- General fund reserves stand at a record $3.771 billion, providing a cushion but not a structural fix.
- Budget officials cite rising health and long‑term care obligations alongside slower economic growth as the primary pressures on future balances.
- Forecasters warn of added uncertainty from missing federal data and shifting national policies, and lawmakers signal 2026 discussions that could include further cuts, revenue changes or tapping reserves.