Why Minnesota is projected to face a future budget deficit, and what lawmakers might do about it

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Why Minnesota is projected to face a future budget deficit, and what lawmakers might do about it

^{Published on 2024-12-07 15:40:36 - MSN}

In just a few short years, Minnesota swung from having a record $17.6 billion budget surplus to seeing a projected deficit on the horizon. The revelation that the state is headed toward a modest $616 million surplus in the next two-year budget cycle and a deficit of $5.

Minnesota is projected to face a significant budget deficit in the coming years, primarily due to the depletion of one-time federal aid received during the economic recovery from the global health crisis, alongside rising costs in health care and education sectors. The state's budget, which was balanced with a surplus in recent years, is now expected to see a shortfall of approximately $2.3 billion by 2027. This situation has prompted discussions among lawmakers on potential solutions, including revisiting spending commitments, possibly increasing taxes, or finding new revenue streams. Governor Tim Walz and legislative leaders are considering adjustments to the current budget to mitigate the impact of the deficit, focusing on maintaining funding for essential services while exploring economic growth strategies to bolster state revenues.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/politics/government/why-minnesota-is-projected-to-face-a-future-budget-deficit-and-what-lawmakers-might-do-about-it/ar-AA1vrNc1 ]

N@N

Why Minnesota is projected to face a future budget deficit, and what lawmakers might do about it