Minnesota Legislature Prepares For 2026 Session Amid Surplus And Structural Deficit

The Olmsted County Board of Commissioners meeting on August 20, 2025, focused on the county's financial outlook and budget considerations for the upcoming legislative session. Key discussions centered around the anticipated budget surplus and the ongoing structural deficit.

Commissioners noted that while a temporary surplus is expected for the 2026 legislative session, the structural deficit remains a concern. However, it is projected that this deficit will not appear as significant as it did earlier in the year. This change is attributed to the Minnesota legislature's decision to incorporate inflation into budget forecasts, which may influence future spending decisions.

Additionally, the county's budget reserve was highlighted as a positive factor, currently standing at approximately $3.2 billion, indicating a strong financial position. This reserve is seen as crucial in managing the structural deficit and ensuring fiscal stability moving forward.

Overall, the discussions underscored the complexities of budgeting in the face of economic fluctuations and the importance of strategic financial planning for Olmsted County. The board will continue to monitor these developments as they prepare for the upcoming legislative session.