Minnesota Management and Budget (MMB) released the State Economic Forecast today. In the Forecast, MMB declared that “Minnesota’s budget and economic outlook remains stable” for the remainder of the FY 2024-2025 biennium, with a projected surplus of $2.4 billion. This $2.4 billion number is an increase of $808 million from the estimates made after the 2023 legislative session.

MMB credited the surplus to strong revenue collections driven by higher-than-expected consumer spending and corporate profits. These strong revenue collections are partially offset by higher estimates in health and human services and education spending. These higher than anticipated spending estimates carry over into the FY 2026-2027 biennium.

The data from this Forecast will be used by Governor Tim Walz and the Legislature to develop a supplemental budget for the 2024 Legislative Session. MMB will release another Forecast in late February of 2024.