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Minnesota Budget Outlook and Trends

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The state's budget is influenced by economic conditions, and in return, state budget and policy decisions should be informed by how Minnesotans are being effected by the economy. We provide analysis of the state's economic and budget forecasts as well as research on long-term budget trends.

Research

March 2012

Surplus short-lived as deficit looms: The February 2012 Economic Forecast

Minnesota has a $323 million surplus for the current budget cycle, the FY 2012-13 biennium. These funds will be used to refill the state's budget reserve and start to reverse the school funding shift. However, Minnesota faces a $1.1 billion shortfall in the FY 2014-15 budget cycle, which policymakers will need to address when they return to session in 2013.

December 2011

Surplus now, deficit later: A look at the November 2011 Economic Forecast

Minnesota has an $876 million surplus, but is facing a $1.3 billion deficit in the next budget cycle. How policymakers address these challenges will have a major effect on the state's economic future.

March 2011

Minnesota's forecast improves, but deficits continue: A look at the February 2011 Forecast

Minnesota's financial picture has improved slightly since November, with the state's budget deficit falling from $6.2 billion to $5.0 billion for FY 2012-13. The state's economy, however, continues to improve at a slow pace and unemployment levels aren't expected to improve until 2014.

January 2011

Minnesota faces slow recovery and a big deficit: A look at the November 2010 Forecast

The state’s latest economic forecast projects a deficit of $6.2 billion for the upcoming FY 2012-13 biennium, or 16 percent of the general fund budget. The prolonged economic slowdown and heavy reliance on short-term budget solutions have both contributed to the state's current budget troubles. The forecast continues to project slow economic growth for the state.

Budget Outlook and Trends Blog Posts

May 05, 2020

May budget report reveals the need to support everyday folks

The May budget projection will guide the decisions that policymakers make in the remaining weeks of the legislative session, and the months beyond. They remind us of how many of our neighbors are struggling, and the importance of taking swift action to reduce the hardships that Minnesotans and their families are facing as a result of the pandemic, and to start building for the economic recovery.

May 04, 2020

Increased Medicaid funding to states protects health care, critical services

While they have taken some preliminary steps, federal decision-makers should further boost the Medicaid dollars it sends to states, make that increase last until the economy recovers, and maintain strong requirements to protect health care coverage.

April 29, 2020

April economic changes bring May budget projections

The novel coronavirus pandemic is having a significant effect on Minnesotans' physical and mental health of Minnesotans....

April 14, 2020

Minnesota’s April economic update

It's a bigger deal than usual, but doesn’t yet have all the answers: The April Revenue and Economic Update is a first look at the economic and fiscal impacts of the coronavirus crisis in Minnesota. The quarterly report from Minnesota Management and Budget (MMB) shows that state revenues have dropped considerably and the national economy has likely fallen into recession.