New state budget forecast highlights opportunity for growth
March 6, 2026
A week ago, last Friday, the state’s budget forecast was updated with the February forecast. The Chamber put out a statement noting that when Minnesota’s economy grows, the state’s budget outlook improves and creates economic opportunity for all Minnesotans.
This new forecast is important because it serves as a jumping-off point for the legislative session. It shows a $3.7 billion budget surplus, which is an increase from the previous estimate and demonstrates how economic growth strengthens the state’s fiscal position. However, long-term challenges remain. The state is projected to face a $2.3 billion deficit in fiscal years 2028 and 2029. Spending continues to outpace revenue. Annual revenue growth is projected at 1.9%, while baseline spending is growing at 2.9%. That structural imbalance reinforces our message that policies that grow the economy can help close the gap and reduce pressure on taxpayers.