Mar 09 2025 4 mins 1
Minnesota's latest budget forecast has revealed a shrinking surplus and looming deficit, setting the stage for challenging budget negotiations in the state legislature. The February 2025 Budget and Economic Forecast shows the projected surplus for the 2026-27 fiscal biennium has decreased from $616 million to $456 million, while a potential $6 billion deficit looms for 2028-29[12][17]. State officials cite federal policy changes and inflation as key factors in the downward adjustment.
In political news, the 2025 legislative session began under unusual circumstances, with a power-sharing agreement in the Senate due to an even split between parties and ongoing disputes over control in the House[7]. Despite these challenges, lawmakers are focusing on priorities such as adult-use cannabis, bonding, elections, and housing[11].
The state's economy shows mixed signals, with the manufacturing sector expecting a rebound in 2025 after contracting in 2024. A survey by the Federal Reserve Bank of Minneapolis and the Minnesota Department of Employment and Economic Development found that nearly half of manufacturers anticipate increased orders in 2025[8].
Minnesota experienced record-breaking warmth in late January, with temperatures reaching the 50s Fahrenheit across much of the state. Over 30 long-term weather stations broke or tied daily maximum temperature records[9]. However, the state also faced a powerful winter storm in early March, bringing heavy snow and strong winds to the Upper Midwest[13].
Environmental concerns persist, with the latest U.S. Drought Monitor map showing 66.5% of Minnesota in moderate drought and 7.5% in severe drought. The driest areas are in north-central Minnesota, and the state has received below-average snowfall this winter[1].
In community news, the Women's March organization is planning a national day of action on March 8, with protests scheduled in all 50 states, including an event in Minneapolis. The demonstration aims to counter what organizers describe as threats to democracy and women's rights[15].
Looking ahead, Minnesota lawmakers face a May 19 deadline to agree on a budget, with the potential for a special session if an agreement isn't reached. The state's response to federal policy changes and efforts to address the projected long-term deficit will likely dominate political discussions in the coming months.
In political news, the 2025 legislative session began under unusual circumstances, with a power-sharing agreement in the Senate due to an even split between parties and ongoing disputes over control in the House[7]. Despite these challenges, lawmakers are focusing on priorities such as adult-use cannabis, bonding, elections, and housing[11].
The state's economy shows mixed signals, with the manufacturing sector expecting a rebound in 2025 after contracting in 2024. A survey by the Federal Reserve Bank of Minneapolis and the Minnesota Department of Employment and Economic Development found that nearly half of manufacturers anticipate increased orders in 2025[8].
Minnesota experienced record-breaking warmth in late January, with temperatures reaching the 50s Fahrenheit across much of the state. Over 30 long-term weather stations broke or tied daily maximum temperature records[9]. However, the state also faced a powerful winter storm in early March, bringing heavy snow and strong winds to the Upper Midwest[13].
Environmental concerns persist, with the latest U.S. Drought Monitor map showing 66.5% of Minnesota in moderate drought and 7.5% in severe drought. The driest areas are in north-central Minnesota, and the state has received below-average snowfall this winter[1].
In community news, the Women's March organization is planning a national day of action on March 8, with protests scheduled in all 50 states, including an event in Minneapolis. The demonstration aims to counter what organizers describe as threats to democracy and women's rights[15].
Looking ahead, Minnesota lawmakers face a May 19 deadline to agree on a budget, with the potential for a special session if an agreement isn't reached. The state's response to federal policy changes and efforts to address the projected long-term deficit will likely dominate political discussions in the coming months.
