November budget forecast
Many of you have already seen the headlines about the state's November forecast, which was released last week. The November and February forecasts are two major signposts in the state's budgeting process, and the November forecast is the earliest indication of the state's fiscal health. In the forecast, experts project the state's revenue and spending for the next four years.
Key takeaways:
- Small balance of $616 million projected for the 2026-2027 biennium, which is $1.1 billion less than prior estimates.
- Reduction comes from lower income and sales tax collections combined with higher spending in long-term care services and special education.
- November forecast shows slower employment and wage growth than the February 2024 forecast.
- Minnesota added 6,000 jobs per month from January through April 2024, but just 1,200 jobs between May and October this year.
The 2025 legislative session will be a very competitive environment for spending. With the projected structural imbalance (i.e. that projected spending is more than projected revenues) at -$3.1 billion in FY 2026-2027 and $-5.1 billion in FY 2028-2029, lawmakers will have to make tough decisions as they craft the next budget.
House committee co-chairs and membership named
The details of the power-sharing arrangement in the Minnesota House came into greater focus over the last few weeks, with both caucuses naming their committee co-chairs and full committee membership for most committees. An agreement previously announced between the House DFL and Republican caucuses stipulated that committees will be split evenly by party, including the co-chairs.
Key GMNP committees and co-chairs are as follows:
Click here to access the full committee rosters. We don't know yet how exactly committees will operate on a day-to-day basis, which may be different for each committee. However, with this important step done, the 2025 legislative session is shaping up.
MHFA Local Government Housing Programs updates
Minnesota Housing recently presented an overview of the new Local Government Housing programs. You can watch the recording of the webinar and the accompanying presentation to review the details. Information on all the Local Government Housing Programs can be found here. Look for further updates and information in the coming weeks.
DEED seeks community reviewers
This winter, DEED will need community members to help review competitive workforce development grant programs. Apply here to be a community reviewer - but act fast! The application closes on Monday, December 16 at 4:30pm.
Climate Innovation Finance Authority
Both the Draft Investment Strategy and the Draft Strategic Plan are now available for the Climate Innovation Finance Authority. You can review those drafts at the links above.