Minneapolis intergovernmental committee hears state, federal updates as budget forecast tightens

Director Topinka provided the Minneapolis Intergovernmental Relations Committee an update on March 25 on state and federal actions affecting the city, saying the State’s revised February forecast reduced the projected biennial surplus and made new spending less likely this year.

Topinka said the February forecast reduced the projected biennial surplus by about $160 million from the November estimate and left a projected shortfall of nearly $6 billion starting in fiscal 2028–29. “We are about halfway through the State legislative session,” Topinka said, adding that committee and finance deadlines approaching in early April will shape what moves forward.

The nut graf: The committee was briefed on the implications of lower state revenue projections, the governor’s revised budget and a recent federal continuing resolution that stripped earmarks; staff warned those developments will constrain funding for city priorities such as capital projects, homelessness services and transit.

Topinka summarized near-term timing and fiscal constraints. Policy bills must clear committee by April 4 and bills with fiscal effects must…