Current:Home > MyMinnesota budget forecast is steady, but with potential trouble ahead -FinTechWorld
Minnesota budget forecast is steady, but with potential trouble ahead
View
Date:2025-04-14 00:44:52
ST. PAUL, Minn. (AP) — Minnesota’s budget picture remains stable in the near term but there are clouds on the horizon, officials announced Wednesday.
An updated forecast from Minnesota Management and Budget projects a surplus of $2.4 billion in the two-year budget period that runs through June of 2025. That’s up $808 million from the estimate at the end of the legislative session in May. The bigger surplus still accounts for just a fraction of the budget of $72 billion.
Higher expectations for consumer spending and corporate profit growth are expected to raise tax revenues above the previous forecast. Budget officials say that’s because the near-term U.S. economic outlook has improved since February, driven by stronger than expected consumer spending, business investment, and employment.
But budget officials also warned of potential problems for the next two-year budget period, which begins in July of 2025. Higher estimates for health and human services spending, and education spending, are expected to result in a projected deficit.
The updated projection means that lawmakers will have a little more money to work with when they reconvene in February for the 2024 legislative session. Their options will include spending it, banking it or cutting taxes.
Officials plan to release more details later Wednesday. Gov. Tim Walz and legislative leaders from both parties plan to provide reaction.
veryGood! (435)
Related
- Apple iOS 18.2: What to know about top features, including Genmoji, AI updates
- Aerosmith retires from touring permanently due to Steven Tyler injury: Read full statement
- Firefighters continue battling massive wildfire in California ahead of thunderstorms, lightning
- Top 13 Must-Have Finds Under $40 from Revolve’s Sale: Featuring Free People, Steve Madden, Jordan & More
- Which apps offer encrypted messaging? How to switch and what to know after feds’ warning
- International Seabed Authority elects new secretary general amid concerns over deep-sea mining
- Vanderpump Rules' Scheana Shay Slams Rude Candace Cameron Bure After Dismissive Meeting
- American swimmer Alex Walsh disqualified from 200 individual medley at Paris Olympics
- Justice Department, Louisville reach deal after probe prompted by Breonna Taylor killing
- Who's golden? The final round of men's golf at Paris Olympics sets up to be fascinating
Ranking
- NFL Week 15 picks straight up and against spread: Bills, Lions put No. 1 seed hopes on line
- Teddy Riner lives out his dream of gold in front of Macron, proud French crowd
- 'Terror took over': Mexican survivors of US shooting share letters 5 years on
- USA swims to Olympic gold in mixed medley relay, holding off China in world record
- Dick Vitale announces he is cancer free: 'Santa Claus came early'
- San Francisco Giants' Blake Snell pitches no-hitter vs. Cincinnati Reds
- 2024 Olympics: Simone Biles Edges Out Rebeca Andrade for Gold in Women's Vault
- How Noah Lyles plans to become track's greatest showman at Paris Olympics and beyond
Recommendation
The Super Bowl could end in a 'three
'We feel deep sadness': 20-year-old falls 400 feet to his death at Grand Canyon
Katie Ledecky makes Olympic history again, winning 800m freestyle gold for fourth time
Indianapolis man sentenced to 145 years in prison for shooting ex-girlfriend, killings of 4 others
Whoopi Goldberg is delightfully vile as Miss Hannigan in ‘Annie’ stage return
For Florida Corals, Unprecedented Marine Heat Prompts New Restoration Strategy—On Shore
How Team USA's Daniela Moroz can put a bow on her parents' American dream
Some Yankee Stadium bleachers fans chant `U-S-A!’ during `O Canada’ before game against Blue Jays