Budget Cycle

Governor Submits Budget
January (4th Tuesday)

Fiscal Year Begins
July 1 

Governor Signs Budget 

Budget Links 

FY2024-2025 (enacted)
FY2024-2025 (proposed)
FY2022-2023 (enacted)
FY2018-2019 (enacted)

Enacted Budget – Fiscal Years 2024-2025

On May 24, Minnesota Governor Tim Walz completed signing the budget bills that comprise the state’s biennium budget for fiscal 2024-2025. The budget calls for $61.8 billion in total expenditures in fiscal 2024 (a 6.6 percent increase compared to fiscal 2023) and $59.1 billion in total expenditures in fiscal 2025 (a 4.5 percent decrease compared to fiscal 2024). General fund spending is estimated to be $37.6 billion in fiscal 2024 (a 36.4 percent increase compared to fiscal 2023) and $32.0 billion in fiscal 2025 (a 14.9 percent decrease compared to fiscal 2024). The increase in fiscal 2024 general fund spending is largely due to one-time spending from the state’s surplus built up from the prior biennium. Tax revenues are estimated at $28.8 billion in fiscal 2024 (a 4.3 percent decrease from fiscal 2023) and $30.1 billion in fiscal 2025 (a 4.5 percent increase from fiscal 2025). The budgetary balance at the end of the fiscal 2024-2025 biennium is estimated at $1.6 billion, compared to $12.3 billion at the end of the fiscal 2022-2023 biennium. The budget bills provides a series of tax relief measures including a one-time refundable tax credit of $260 for single filers and up to $1300 for a family; a child tax credit of up to $1,750 per child for low-income families; fully exempting state taxes on social security for more than three quarters of seniors; a Renter’s Property Tax Refund and Homestead Credit Refund; and increasing local aid to help avoid property tax increases. Spending highlights of the budget include increasing the general funding formula for education; $400 million for programs aimed at early learners; funding for free college for students with a family income under $80,000; investing $500 million in the Minnesota Forward Fund for economic development projects and workforce training; an income exemption for workforce grant payments; $110 million in outdoor recreation investments; additional funding for the entire human services spectrum of need; and a $1.3 billion investment in the state’s transportation infrastructure including state matches for the Infrastructure Investment and Jobs Act (IIJA).

Proposed Budget - Fiscal Years 2024-2025 

Minnesota Governor Tim Walz released his two-year budget proposal for fiscal 2024 and fiscal 2025 on January 24. The budget calls for $58.31 billion in total expenditures in fiscal 2024, a 2.7 percent increase from the recommended level for fiscal 2023, and $57.29 billion in fiscal 2025, a 1.8 percent decline from fiscal 2024’s recommended level. The budget recommends general fund spending of $34.16 billion in fiscal 2024, a 24.6 percent increase from fiscal 2023, and $31.03 billion in fiscal 2025, a 9.2 percent decline from fiscal 2024. General fund revenues are projected at $25.15 billion in fiscal 2024 (a 14.2 percent decline from fiscal 2023) and $29.66 billion in fiscal 2025 (a 17.9 percent increase from fiscal 2024). The proposal assumes a budget reserve of $2.85 billion and a projected general fund balance of $1.27 billion.


Proposed Budget Highlights 

The governor’s “One Minnesota Budget” focuses on making Minnesota the best state in the nation for children, investing in the state’s economic future, combatting climate change, and improving public safety. In addition, the recommended budget is aimed at lowering costs, cutting taxes, and improving lives for Minnesotans. Highlights of the budget proposal include:  

Making Minnesota the Best State for Kids

  • $12 billion proposal to lower the cost of childcare for middle-class families, reduce child poverty by expanding tax credits for families who need them the most, and make the largest investment in public education in state history.
  • Provides universal school meals for students and expands access to special education and mental health resources.

Investing in Minnesota’s Economic Future

  • $4.1 billion proposal would provide paid family and medical leave for Minnesota workers, bolster support for small businesses, and expand Minnesota’s workforce in critical areas.
  • Includes climate proposals which expand clean energy and reduce climate impact.
  • Provides funding to support farmers while expanding the state’s biofuel infrastructure and building soil health.

Protecting Minnesotans’ Health and Safety

  • Lowers costs and expands access to high quality healthcare for children and families.
  • Makes it easier for Minnesotans to purchase a home, afford rent, and maintain stable housing.
  • Includes investments to permanently fund the work to end veterans’ homelessness statewide.
  • Provides over $300 million in public safety aid for local governments, stands up a violent crime initiative, supports victims of crime and domestic violence, and invests in a more fair and equitable criminal justice system.

Tax Relief

  • Recommends sending nearly $4 billion of the state’s surplus to residents in the form of checks up to $2,600.
  • Proposes $219 million to reduce taxes on Social Security benefits.
  • Increases the Local Government Aid and County Program Aid programs by $30 million each to help keep property taxes low.
  • Calls for increasing the School Building Bond Agriculture Credit to lower property taxes for farmers.

Legalizing Adult-Use Cannabis

  • Recommends funding for the safe and responsible legalization of adult-use cannabis and creates a new Office of Cannabis Management.

Building a Clean Transportation System

  • Provides one-time funding for the purchase of 30 battery electric buses.
  • Leverages federal Infrastructure Investment and Jobs Act (IIJA) funds for efforts to reduce carbon emissions, expand the electric vehicle charging network, and build a more resilient transportation system.
  • Provides a state-match for IIJA-funded multimodal transportation projects.

Investing in Minnesota’s Higher Education System

  • Proposes increased funding for the state’s two public higher education systems and for the state’s tribal colleges.
  • Includes funding to increase student mental health support.