ST. PAUL, Minn. (GRAY) – Minnesota’s semi-annual budget forecast took place Thursday, revealing a budget surplus in FY 26-27, but a pending deficit in FY 28-29.

Minnesota Management and Budget, or MMB, explained during its forecast presentation that the state’s fiscal outlook for the FY 26-27 biennium had improved since the end of the legislative session with a surplus of about $2.47 billion expected to carry over.

The improved short-term outlook is due, in part, to the budget passed by the legislature in June. The state’s February forecast showed a roughly $6 billion deficit in FY 28-29.

The legislature managed to winnow the deficit, but FY 28-29 are still projected to have a deficit of around $3 billion.

“This is about $1.8 billion worse than the end of session [estimate],” MMB Commi

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