Budget and Economic Forecast
Twice each year we prepare the Budget and Economic Forecast as required by Minnesota law. The November forecast is used to set the starting point for the budget, and is the basis for the Governor's recommendations. The February forecast incorporates additional data and is used by the Legislature and the Governor to set the enacted budget or to ensure that enacted budgets remain on track and in balance. Forecast information is also used by bond rating agencies and other financial analysts to review the state's financial health, and by the media who present information on the state's financial condition to the public. Sign up to receive Forecasts and Updates by email.
Latest: November 2017 Budget and Economic Forecast
December 5, 2017
A reduced U.S. economic growth forecast is mirrored in Minnesota’s budget outlook. A deficit of $188 million is now projected for the FY 2018-19 biennium. Forecast revenues for the biennium are down $559 million compared to end of session estimates. All major tax types show reduced growth with individual income taxes expected to be $461 million lower over the current biennium. Spending is estimated to be $398 million higher than end of session largely due to a higher forecast for special education spending along with unspent appropriations from FY 2017 that are projected to be spent in FY 2018. Partially offsetting lower revenue growth and higher spending are $625 million in increased resources available from a positive closing balance in FY 2017. Reserve balances are $20 million higher due to statutory allocations. A reduced budget outlook continues into the next biennium with negative balances due to slower growth.