Minnesota projects bigger 2026-27 budget surplus amid funding uncertainty and fraud concerns

Minnesota's February forecast raises the 2026-27 general fund balance to about $3.7B (up ~$1.3B from November) and reverses the 2028-29 outlook to a small surplus, helped by higher capital gains, interest, and corporate tax receipts, but officials warn that federal funding volatility and potential Medicaid fraud withholds could erode gains, prompting calls for prudent spending and anti-fraud measures.