Budget Reserve Recommendation

To adequately manage the underlying risks in Minnesota’s general fund tax revenue system, Minnesota Management and Budget (MMB), in accordance with Minnesota Statutes section 16A.152 subd.8, recommends a budget reserve target of 4.9 percent of the current biennium’s general fund non-dedicated revenues, or a $2.873 billion budget reserve for the 2024-25 biennium. At the end of the 2023 regular and special legislative session, Minnesota’s projected FY 2022-23 budget reserve was $2.852 billion.

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