Minnesota's $2.4 billion budget surplus raises concerns of future deficit.
Minnesota's budget surplus remains at $2.4 billion, but officials warn of a possible deficit in the future due to increased spending in health and human services and education. The surplus is projected to decrease significantly by the end of the 2026-27 biennium, leaving only $82 million. Despite the imbalance, the state is considered to be on solid financial footing, but officials emphasize the need for budget constraints and prioritizing critical programs. Governor Tim Walz plans a measured approach for the next legislative session and opposes tax cuts for high-income individuals. Republicans criticize the Democrats' spending and its impact on taxes and costs for Minnesotans. The state will release a new projection in February.