SAINT PAUL, Minn. – Minnesota’s budget continues to trend downward as state officials say spending growth outpaces revenue growth through projections for fiscal year 2029.
New numbers from the state’s Department of Management and Budget show the state’s budget for the next fiscal period is now at $456 million. That’s down by $160 million from prior estimates.
The projected general fund shortfall for the 2028-2029 biennium is at $5.995 billion. That’s $852 million worse than November estimates.
State officials say there’s a higher forecast for inflation leading to increases in projected revenues and expenditures and say shifting policies at the federal level give significant uncertainty to their projections.
“Today’s forecast shows all Minnesotans the painful and foreseeable outcome of prioritizing political expediency over long-term economic stability, by spending one-time surplus funds for ongoing programs. What this forecast shows all Minnesotans is fiscal responsibility isn’t just a choice; it’s now a necessity. Our businesses and taxpayers need a realistic and responsible bipartisan balanced budget. Minnesota needs an economically competitive approach—one that meets the state’s needs and strengthens our Headquarters Economy without more tax hikes,” Minnesota Business Partnership CEO Kurt Zellers said.
