State Budget Forecast Shows $616 Million Surplus for 2026-2027
ST. PAUL (WJON News) -- The latest economic forecast just released Wednesday shows what Minnesota officials term "a growing structural imbalance" in the state budget "throughout the... planning horizon"
Officials predict a 616-million-dollar balance at the end of the fiscal year 2026-27 biennium -- 1.1 billion dollars less than prior estimates.
They say it's due to projected reductions in income and sales tax revenues, plus higher spending for long-term care and special education.
Governor Tim Walz struck an optimistic note yesterday afternoon, before the forecast release.
"I think we're solid. ...we always make sure we're fiscally responsible. We're Triple-A bond rated. I expect it to be good."
When lawmakers return to the State Capitol next month, they not only must make any necessary adjustments in the current budget for 2024 and 25, but also set the entire budget for 2026-27.
Walz and legislative leaders weigh in on the latest economic forecast this afternoon.
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