On Friday, Minnesota Management and Budget (MMB) released the state’s annual February budget forecast, providing information and an outlook for the state’s financial picture. The forecast shows a $3.734 billion surplus at the end of fiscal year 2027, $1.3 billion more than was projected in November’s forecast. 

However, MMB cautions that a significant imbalance remains, meaning the state is on track to spend more than it brings in over time. The February forecast also shows a structural deficit of $3.357 billion in the 2028 – 2029 fiscal years. The forecast numbers do not account for any new spending, meaning that new spending bills passed this legislative session will further increase the deficit down the line. If the surplus in this biennium is not spent but carried forward, the 2028 – 2029 deficit would shrink considerably. 

“Even with a projected budget surplus, the forecast shows that our state still spends more than it collects,” said Senator Gary Dahms (R – Redwood Falls), Republican lead of the Senate Commerce Committee. “This session, we must adjust the budget and prioritize policies that put Minnesotans first.” 

The February forecast will serve as a guide for the Minnesota Legislature for the remaining budget-year before the constitutionally mandated session deadline on May 18, 2026. Click here to read the full MMB February Budget and Economic Forecast. 

Senator Dahms is in his fifth term representing Senate District 15 which includes communities in Blue Earth, Brown, Chippewa, Lac qui Parle, Lyon, Redwood, and Yellow Medicine counties. He also serves as the Republican Lead of the Senate Commerce and Consumer Protection Committee and is a member of the Agriculture, Veterans, Broadband, and Rural Development Committee.