The state's latest economic forecast, revealed Dec. 4, predicts less revenue than expected and higher-than-expected costs for some government programs.

DFL leaders point to the current surplus, while the GOP blames them for trouble ahead.

The state’s government is expected to have less money than previously predicted for lawmakers to allocate when they return to the Capitol Jan. 14 and begin crafting a budget for the next two fiscal years.

Just as Minnesota has experienced a warmer winter than usual, so has the state’s budget outlook warmed over the past few months. On Thursday, Minnesota Management and Budget officials released the February budget and economic forecast showing the 2024-25 biennium is expected to end with a surplus of $3.71 billion. That’s up $1.32 billion from November projections.

Minnesota’s budget picture has brightened in the near term but remains on shakier ground down the road.

Minnesota lawmakers last year showered nonprofit groups with over $1.1 billion, with some receiving more money from the Legislature than they normally get in other grants and donations in an entire year.

Had Gov. Tim Walz’s budget office presented the latest economic and revenue forecast one week ago, it would have reported a $19 billion revenue surplus.

Fiscal Reviews The Fiscal Review is an annual document summarizing spending in state government for the year.

The checks are not quite in the mail, but they will be coming. And, if you make under a certain income, you can count on tax credits for each child in the household, getting a hunk of your rent back, and not having any taxes on your Social Security benefits.

For months, it seemed that Democrats who control the Minnesota Legislature were headed toward a political standoff over whether to eliminate the state tax on Social Security benefits.

With the session’s final committee deadline exactly two weeks away, legislative leaders announced an agreement Tuesday on how much new money they plan to spend in 2023 and the framework for doing so. Let the omnibus-bill fest begin!

The three largest line items are a $250 million bump in public safety aid, $240 million for lead pipe remediation, and $135 million in reimbursement aid to school districts for extending unemployment eligibility to certain school district employees that only work during the school year.