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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

February 2020

Minnesota should invest in the future: Inside the November 2019 Economic Forecast

The November 2019 Economic Forecast brought some positive news for now, but predicts a more challenging budget situation in the future. Minnesota is in positive budget territory with a $1.3 billion balance projected for the current two-year budget cycle, FY 2020-21. However, that good news is short-lived. Faced with a short-term surplus, policymakers have an opportunity to make some one-time investments.

February 2018

Minnesota needs to prepare for future: Inside the November 2017 Economic Forecast

The November Economic Forecast projects a $188 million deficit for FY 2018-19 and a $586 million deficit for FY 2020-21. This brief examines the forecast’s economic data that show Minnesota’s economy is still doing fairly well, and that the national economy is expected to grow, although at a slower rate than previously projected. These budgetary projections do not include the impact of likely federal tax and budget changes; state policymakers should ensure Minnesota is fully prepared to navigate the uncharted landscape ahead.

February 2017

Caution is key: Inside the February 2017 Economic Forecast

Minnesota continues its positive budget trend, with a $743 million positive balance for the rest of FY 2016-17 and a $1.7 billion projected positive balance for the upcoming FY 2018-19 budget cycle. These projected balances provide opportunities for the state to make smart investments to bring the economic recovery to every part of the state. However, an uncertain federal budget and tax landscape calls for caution. Minnesota lawmakers should avoid large and unsustainable tax cuts that could put our economic future on shaky ground.

January 2017

Uncertainty means caution necessary: Inside the November 2016 Economic Forecast

Minnesota has a projected $678 million positive balance for the remaining months of FY 2016-17, and a projected $1.4 billion positive balance for FY 2018-19. This brief takes a close look at the state's November forecast, which the governor will use as his starting point for setting the next biennial budget. Uncertainty, in both the national economy and with potential federal policy, should signal caution to Minnesota policymakers when considering budget and tax changes.

Budget Outlook and Trends Blog Posts

July 22, 2021

State’s July economic update shows strong revenue numbers

We’re getting “back to normal”, but that isn’t enough The state of Minnesota’s revenue and economic picture continues to...

May 03, 2021

What does improved April economic update mean for budget negotiations?

The state’s economic picture has improved compared to the February forecast , according to the recent April Revenue and...

March 02, 2021

Budget forecast shows welcome news but Minnesota needs resources for an equitable future

The state’s new budget projections give the latest on the continuing impact of the pandemic, and a preliminary sense of ...

January 21, 2021

January economic update shows some improvement

The state’s economic picture has improved compared to the November forecast, but COVID-19 and the economic fallout are still hurting many Minnesotans’ health and economic stability, according to the state of Minnesota’s recent January Revenue and Economic Update.