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.

Minnesota is headed on a negative fiscal trajectory in the near future, according to the state’s latest budget forecast.The state will have a $456 million surplus heading into the 2026-27 fiscal year,