Minnesota budget forecast shows near-term surplus, looming deficit shrinking to $3 billion

ST. PAUL — Minnesota's biannual budget forecast on Thursday, Dec. 4, shows the state's looming budget deficit decreasing by roughly $3 billion.

Minnesota Management and Budget (MMB) presented its November forecast on Thursday, showing a previously projected $6 billion budget deficit for 2028, decreasing to $2.96 billion for 2028-29. In the near term, projections show the state working with a $2.57 billion surplus for 2026-27.

Erin Campbell, commissioner of Minnesota Management and Budget, said Thursday that the economic challenges in the coming years are “significant but manageable.”

“You'll recall when I stood before you nine months ago, we were forecasting a $6 billion negative balance for those planning years,” Campbell said. “The governor and Legislature made significant progress la