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The numbersStatewide

The Minnesota state budget

Where the general fund's money comes from and where it goes, transcribed from the state's own February 2026 Budget and Economic Forecast. The general fund is the budget the Legislature fights over; it excludes dedicated funds like the gas tax and most federal money that passes through agencies.

Scope
Unlike most of this site, which covers Nowthen city government and Anoka County, this page is statewide. Every figure comes from Minnesota Management and Budget's published forecast tables, linked at the bottom; nothing here is estimated by us.

The headline numbers

The FY2026-27 biennium at a glance, per the February 2026 forecast.

Revenues, FY2026-27
$67.5 billion

Current resources the general fund takes in over the two-year budget (July 2025 through June 2027).

Spending, FY2026-27
$70.2 billion

Total expenditures and transfers. Spending above current revenues is covered by balances carried forward.

Projected balance
$3.7 billion

Budgetary balance projected for the end of FY2027, after reserves are set aside.

Reserves
$3.8 billion

Budget reserve plus the cash flow account, held apart from the projected balance.

Where the money comes from

General fund revenues by source for the FY2026-27 biennium. Three taxes carry the budget: individual income, sales, and corporate income together are about 85 percent of it.

General fund revenues by source, FY2026-27 bienniumIndividual income tax$35.2B · 52%General sales tax$15.9B · 24%Corporate income tax$6.6B · 9.8%Statewide property tax$1.5B · 2.2%Insurance gross earnings$1.3B · 1.9%Cigarette and tobacco taxes$1.0B · 1.5%Investment income$938M · 1.4%Medical Assistance surcharges$828.9M · 1.2%Estate tax$640.8M · 0.9%Everything else$3.6B · 5.4%

Nondedicated revenues plus transfers, from the forecast's “Estimates of Nondedicated Revenues” table, in the state's own categories. Percentages are shares of total FY2026-27 current resources.

Where it goes

Spending by budget area: the FY2026-27 forecast (dark) against FY2024-25 actuals (light). Schools and health care are about three quarters of the general fund.

General fund spending by area: FY2026-27 forecast (dark) vs FY2024-25 actual (light)E-12 education$26.0B$24.6BHealth and human services$25.6B$21.0BProperty tax aids and credits$4.8B$5.6BHigher education$4.0B$4.2BPublic safety and judiciary$3.6B$3.5BJobs, commerce, ag, and housing$1.1B$3.6BState government and veterans$2.0B$2.8BDebt service$1.2B$1.1BCapital projects and grants$291.7M$1.3BTransportation$921.2M$786.3MEnvironment and energy$710.8M$844.4M

The FY2024-25 actuals include one-time spending enacted in 2023, which is why several smaller areas (jobs and commerce, capital projects, state government) drop sharply in the current biennium. Health and human services grows the fastest; the forecast names Medical Assistance, Minnesota's Medicaid program, as the most significant driver.

Does it balance?

Each biennium's current revenues against its total spending. Spending exceeds what comes in; the difference is covered by balances carried forward from earlier surpluses.

Current revenues (dark) vs total spending (light) per biennium$63.0B$69.3BFY 2024-25balance $4.9B$67.5B$70.2BFY 2026-27*balance $3.7B$70.0B$73.4BFY 2028-29*balance $377.3M

*Forecast (FY2026-27) and planning estimates (FY2028-29, shown including the forecast's estimated-inflation line of $1.0 billion). The balance shown is the budgetary balance after the $3.8 billion in reserves.

The state's own caveat
Spending growth outpaces revenue growth through projections for FY 2029. The projected general fund balance for the FY 2028-29 biennium is now $377 million, however a significant structural imbalance remains. The forecast also flags federal policy shifts and data gaps from the recent federal shutdowns as significant sources of uncertainty.

Sources

Both documents are Minnesota Management and Budget's, released February 27, 2026. Figures are transcribed exactly, in the state's categories; the next forecast (November 2026) supersedes these.