Minnesota’s projected budget surplus has grown to nearly $2.5 billion in the current two-year budget cycle, though an expected shortfall of almost $3 billion remains for the following two years.

The new budget forecast released Thursday by the Minnesota Department of Management and Budget shows a slight improvement over its March forecast, when state officials projected a $456 million surplus in the 2026-2027 biennium and a $6 billion shortfall in 2028-2029.

Growth in the projected surplus is the result of a “better-than-expected fiscal year close and higher near-term revenue collections, partially offset by increased spending estimates,” MMB said in a summary of its November forecast.

“Minnesota’s budget and economic outlook remains stable in the current biennium; however, structural b

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