Minnesota Report
Friday’s Budget and Economic Forecast for FY 2028-29 provided a small respite from the projected $6 billion projected deficit in 2029. Granted the full adverse impact of ICE’s occupation in Minnesota have not fully been accounted for.
The entirety of the report is available on the MMB website. Our unemployment figure is slightly below the national average, and trending upwards. With the February 2026 Budget and Economic Forecast, the FY 2026-27 biennium is now projected to end with a balance of $3.734 billion, an improvement of $1.269 billion.
The Structural Imbalance is lower, but still projected to show a deficit. State revenue is projected to grow $2.543 billion (1.9 percent annually) in FY 2028-29 over the current biennium, while spending, including discretionary inflation, is expected to be $3.133 billion (2.2 percent annually) higher in the next biennium.
Much of the difference stems from inflation, and this is a factor exasperated by Donald J Trump’s (R) unneeded and unnecessary tariffs. People are showing rising credit card debt which extends past 90 days and is a testament to additionally applied economic stress in meeting the costs of living.