Minnesota’s budget outlook has flipped from a record surplus to a projected $6 billion deficit down the line. The shortfall projected for the state’s 2028-2029 budget cycle will almost certainly influence spending decisions at the Capitol this year.

Minnesota finance officials reported worsening in the state’s budget picture in the near term and down the road, saying a small fiscal cushion had shrunk and a future potential deficit has grown.

The revenue forecast will be the Legislature’s fiscal guide in coming up with a two-year balanced budget this session.