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Minnesota Economic Forecast

The latest Minnesota economic forecast just released shows the state expects a 2.4-billion-dollar surplus for the 2024-25 budget cycle — right about where analysts predicted it would be.

The surplus is much smaller than the whopping 17-plus billion dollars that lawmakers received news of exactly one year ago.

Most of that was used during the last legislative session for a combination of Democrats’ spending priorities and tax cuts and rebates — which Republicans said, and continue to say, were a fraction of what Minnesotans deserved to get back.

Officials say the current 2.4 billion-dollar surplus is driven by higher expected consumer spending and growth in corporate profits.

They note the near-term economic outlook for the U-S has improved, but caution that higher estimated spending increases for education and health and human services could put the state budget in the red in 2026 and ’27.

The projected budget deficit is $2.31 billion in the 2026-2027 fiscal year.

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