Republicans push for tax relief following improved budget forecast

(The Center Square) – Minnesota’s budget outlook for the coming fiscal year has significantly improved, despite ongoing economic and fiscal uncertainty.

According to the February budget forecast recently released by Minnesota Management and Budget, the state now projects a $3.7 billion balance for fiscal year 2026-27 – $1.3 billion higher than estimates from November.

The state credits a slightly stronger economic outlook and higher revenue projections, though much of that revenue comes from volatile sources.

Spending growth is expected to outpace revenue through fiscal year 2029, and structural imbalances remain. Federal policy changes and missing or incomplete data from recent government shutdowns add further uncertainty to Minnesota’s financial stability.

Republican leaders in the Minnesota House said this forecast shows the state has an opportunity to provide tax relief and pro-business policies.