In This Issue:
State Budget and Economic Forecast Released
The Office of Minnesota Management and Budget (MMB) released the state’s November Budget and Economic Forecast this morning. This is one of two forecasts prepared each year. The next forecast will be released in late February and will serve to inform legislative budget discussions and activity next session.
MMB officials described the state’s economic outlook as ‘stable’ in the current biennium, with the fiscal year ending at a more positive level than expected, and higher revenue collections. MMB noted that these were offset by increases in spending estimates, resulting in a projected surplus of $2.465 for the current biennium.
A shortfall of $2.9 billion is projected for FY2028-29. MMB noted that the level of structural imbalance has increased from what was projected at end of session, by $1.8 billion. Officials stated that higher income tax collections are being offset by increases in health care spending and that lower Gross Domestic Product (GDP) spending, and lower rates of personal consumer spending, which are primary growth drivers, are predicted.
The forecast documents can be viewed HERE.
2026 Livable Communities Program Information Session
Next week, Metropolitan Council staff will host an information session to discuss changes to the Livable Communities Act grant programs for 2026. The application deadline for the first round of funding is April 15, 2026.
The session will be held in-person on Thursday, December 11th from 2:00 – 3:00 pm at the North Regional Library, Room 208, 1315 Lowry Ave N, Minneapolis, MN 55411. The Council plans to have two other information sessions in 2026, in Blaine and Eagan. Metro Cities will post information on those sessions as it is available.