ST PAUL, Minn — State budget officials on Wednesday forecasted a surplus of $616 million for the next two-year budget cycle, around $1.1 billion less than prior estimates, according to the Minnesota Department of Management and Budget’s website.

They added that the state could face a multi-billion dollar shortfall in the following budget cycles.

“Projected reductions in income and sales tax revenues combined with higher spending for long-term care and special education result in a growing structural imbalance throughout the budget planning horizon,” the website states.

During a news conference Wednesday morning, Minnesota Management and Budget Commissioner Erin Campbell said it’s obvious this new surplus amount is a lot smaller than the $3.8 billion predicted in February and described how a big deficit could be looming in the future. 

“Our financial picture is more constrained from the very beginning of (the 2028-2029 budget period.) During fiscal years 2028 and 2029 we expect spending to exceed revenues by 3.5 billion dollars,” said Commissioner Campbell. She explained that with inflation added into the equation, the projected deficit would be $5.1 billion for the 2028-29 budget period.

Republicans are saying Democrats need to start spending cuts, while Democrats are defending their leadership.

“House Republicans are putting state agencies on notice: the times of automatic budget increases and dramatic government employee growth are over, and we expect you to join us in working to find savings and root out waste and fraud,” House GOP Speaker-Designate Lisa Demuth, R-Cold Spring, said in a release.

“Over the last 10 years, DFL leadership has led to budget surpluses and large reserves. As we look ahead to the next Legislative Session, DFLers will continue focusing on supporting workers and families, because we know that’s the best way to build a strong economy,” DFL House Leader Melissa Hortman said in a release.

NEW YORK — New video and images obtained by NBC News reveal the “brazen” nature of the shooting that killed UnitedHealthcare CEO Brian Thompson in New York on Wednesday morning.

Still images from surveillance video show the gunman approaching Thompson from behind, standing just feet away as he pointed a gun at Thompson’s back. At least one bystander can also be seen standing nearby.

The shooter appeared to be “lying in wait for several minutes” before approaching Thompson from behind and opening fire, New York City Police Commissioner Jessica Tisch said. 

“Many people passed the suspect, but he appeared to wait for his intended target,” Tisch said, adding that the shooting “does not appear to be a random act of violence.”

According to investigators who reviewed the surveillance video, the shooter fired multiple times, interrupted by a brief gun jam, as Thompson stumbled forward and fell to the sidewalk. The shooter is then seen walking past Thompson and out of the frame.

“From watching the video, it does seem that he’s proficient in the use of firearms as he was able to clear the malfunctions pretty quickly,” NYPD Chief of Detectives Joseph Kenny said.

Thompson was shot at least once in the back and once in the calf, Tisch said. Police had not yet established a motive.

The shooter, who police said appeared to be a man wearing a jacket, face mask and carrying a backpack, fled on foot before pedaling an e-bike into Central Park a few blocks away. The shooter was at large, sparking a search that included police drones, helicopters and dogs. 

NYPD Crimestoppers have released additional images of the alleged gunman as their manhunt for the shooter continues.

Thompson, 50, served as CEO of Minnetonka-based UnitedHealthcare since 2021.

MINNEAPOLIS — The 2024 election cycle has barely had time to cool off as the 2025 race for Minneapolis mayor starts to heat up.

On Wednesday, Ward 11 Minneapolis City Council Member Emily Koski officially launched her bid for mayor, joining State Sen. Omar Fateh in challenging incumbent Mayor Jacob Frey.

“Minneapolis is and always has been my home,” she said in a press conference announcing her candidacy. “… Today, it’s clear to me the city I love is at a crossroads. We face many challenges and opportunities. We’re up against efforts to drive wedges between us and pit us against one another, and we need a strong, unifying leader to move us forward. 

“That is why today, I am proud and honored to announce I am running to be the next mayor of the city of Minneapolis.” 

Koski was first elected to the City Council in 2021 and re-elected in 2023. While in office, she’s focused efforts on public health and safety, workers’ rights and affordable housing, among other citywide initiatives.

In her statements Wednesday morning, Koski accused Frey of “creating conflict” during his time as mayor, saying he’s built “division” instead of “solutions.”

“Over the last four years, I’ve had the front-row seat to this mayor’s tenure. I’ve witnessed firsthand his inability to work with your City Council and his absence at so many tables — whether that be with local organizations and advocacy groups, our county, state or federal governments,” she said.

“His focus on creating conflict, turning every issue, every problem, into Us vs. Them; building division, not solutions; and his failure to lead us through our toughest challenges. We can and we must do better.”

Koski also referenced her father, Al Hofstede, a former Minneapolis City Council member, chair to the Met Council and two-term mayor, who she said “modernized Minneapolis.”

“My dad devoted his whole life to the city and its people, and I’m proud to carry on that legacy,” she said.

Frey’s office responded to Koski’s announcement later Wednesday morning, accusing the city council member of flip-flopping on some of the city’s most major issues.

“Over the last two years on the Minneapolis City Council, Emily Koski has changed her position on everything from paying police officers more to regulating Uber and Lyft,” the statement read. “Minneapolis voters deserve a clear vision and Mayor Frey will continue to outline his. In the meantime, we look forward to seeing what the Council Member stands for in this election cycle.”

Sen. Fateh, who represents District 62 — which includes part of Minneapolis — entered the race on Monday. Elected to the state legislature in 2020, Fateh was the first Somali American sworn into the body. In his role, the senator worked closely on a law boosting pay for rideshare drivers and helped secure student financial aid for lower-income families, among other actions.

During his launch for Minneapolis mayor, Fateh also criticized Frey, saying he’s “failing Minneapolis.”

“Mayor Frey and the status quo are failing Minneapolis residents. We deserve leadership that makes it so people want to continue to live here, raise families here, and start businesses here,” he said. “I’m committed to building a city that works for everyone. Serving in the Minnesota Senate, I’ve seen firsthand what a progressive legislature can do with the right executive. As mayor, I will work with the progressive City Council to achieve tangible wins for our neighbors and uplift those of us who are struggling to get by.”

Following Fateh’s announcement, Frey said he would “welcome Senator Fateh to the mayoral race,” and then accused the senator of “rubber-stamping the most extreme voices on the City Council.”

“We welcome Senator Fateh to the mayoral race and look forward to presenting voters with a clear choice between two contrasting visions for the future of Minneapolis. Mayor Frey’s responsible leadership has helped the city recover while making critical progress toward rebuilding the police department, leading the nation in affordable housing, and supporting workers and local businesses. Senator Fateh, a Democratic Socialists of America member who supports removing the police department from the city charter, would jeopardize that progress by rubber-stamping the most extreme voices on the City Council,” said a Frey campaign spokesperson.

Frey’s seat — and all 13 of the city council’s — are up for grabs in 2025.