State of Minnesota Reports $941 Million Budget Boost

St. Paul, MN (KROC-AM News) - The State of Minnesota's financial outlook has improved by nearly $1 billion.

A new report issued by the State Office of Management and Budget shows that the state government ended the previous two-year budget cycle with a general fund balance $941 million higher than expected. The final tally of revenues from the 2024–2025 biennium, which ended in June, shows they came in more than $1.3 billion—or 2.1%—above estimates. The report also indicates that general fund spending was $364 million higher than anticipated.

Higher Tax Revenues Drive Stronger State Balance Sheet

The $941 million surplus has been added to the projected state government funding balance for the current biennium, which runs through June 2027. The report says that when the current state budget was adopted in June, it was estimated that just under $4 billion would carry forward from the previous budget period. That surplus has now grown to just under $4.9 billion.

Surplus Boosts State’s Carryover Funds to $4.9 Billion

Overall, the state’s general fund revenues for the previous biennium totaled $63 billion, with nearly $59 billion of that amount generated by tax collections, which were 1.4% higher than projected. Non-tax revenues totaled more than $3.36 billion, which was 2.3% above the forecast.

State officials say the updated numbers will be incorporated into the next state revenue forecast, which is expected to be issued in early December.

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