The February 2025 Budget and Economic Forecast, released on March 6^th by Minnesota Management and Budget, reveals another significant shift in the state’s fiscal outlook – one that will hopefully serve as a warning to policymakers.

The projected budget surplus for the upcoming biennium (Fiscal Years 2026-2067) has declined by 26% since November 2024, shrinking from $616 million to $456 million. While this reduction is concerning, the most alarming shift is the projected budget deficit for Fiscal Years 2028-2029, which has ballooned to $6 billion – an increase of $852 million over previous estimates.

At this critical juncture, the Legislature must prioritize a balanced approach that curtails unnecessary spending, avoids new or additional taxes, and supports a business environment that is supportive of Minnesota’s Main Street businesses.