New data paints a mixed picture of Minnesota's state finances, with improving fortunes in the current budget but a deficit still on the horizon.

The state’s budget deficit is now projected to be $3 billion for the 2028-2029 budget cycle, according to new numbers released Thursday.

That represents a reduction on the $6 billion deficit projected this past spring, however it's more than the $1.1 billion projected deficit lawmakers had aimed for when passing a series of spending cuts during the most recent legislative session.

Budget forecasters cite higher health care costs and slow economic growth as reasons for the additional pressures on state finances.

However, forecasters increased the surplus in the current budget to $2.5 billion, beating previous projections.

In a news release, th

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