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State Revenue Tops Forecast by $847 Million in July
Higher-than-expected income tax collections drove the increase in general fund revenue.
Every month, Minnesota Management and Budget (MMB) releases an update on the state’s general fund revenue and how it compares to projections from the February state budget and economic forecast.
In its July report, MMB announced that general fund revenue for fiscal year 2025 totaled $31.9 billion, or roughly $847 million more than expected. The primary driver behind the higher-than-expected revenue is individual income tax collections, which came in 6.8% above projections.
View the MMB July budget report (pdf).
Despite the positive numbers, MMB cautions that economic conditions have become more uncertain. The agency notes that the likelihood of a broader economic downturn — both nationally and in Minnesota — has increased since the February forecast.
What’s next?
The next major budget and economic forecast from MMB is expected in late November or early December, with a final update in February 2026. Lawmakers will use that data to determine a potential supplemental budget to the two-year state budget passed during the 2025 regular and special legislative sessions.
The League of Minnesota Cities Intergovernmental Relations (IGR) team will provide full analysis of those reports when they are released.