(ST. PAUL, Minn.) – In a new economic forecast released Thursday by the state’s official budget office, Minnesota’s budget outlook has taken a downturn amid significant near-term economic and fiscal uncertainty due to federal policies.
MMB now projects a positive balance in FY 26-27 of $456 million, $160 million lower than November’s projection, and a shortfall in FY 28-29 of $5.995 billion, $852 million worse than previous estimates.
Senator Heather Gustafson (DFL-Vadnais Heights) released the following statement in response to Thursday’s forecast.
“While Minnesota had a projected budget surplus in November, 50 short days of President Trump’s agenda has our economy in a tailspin.
“In the last two years, we invested in Minnesotans. We delivered a $3 billion tax cut, including the biggest Social Security tax cut in state history. We passed Universal School Meals, providing our kids the food they need while saving the average family $1800 a year. We made a $5 billion investment in our schools, $300 million in public safety aid for every city and county in Minnesota and delivered historic funding for our roads and bridges while keeping $4 billion in the bank for future uncertainty.
“But nothing we did could have prepared us for the devastating policies of President Trump. From a disastrous trade war, severe cuts to Medicaid, and illegal lay-offs for dedicated public servants, the list of people getting screwed is growing every day. It’s working families, children, seniors, people with disabilities, veterans, and our farmers getting hurt, while billionaires like Elon Musk get even richer.”
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Learn more about Sen. Gustafson.
