Minnesota Mayors Warn of Fiscal Strain as State Faces Federal Probe and Economic Challenges in 2026
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On the business front, the construction sector shows a positive yet cautious outlook for 2026, with job growth outpacing the economy but challenged by labor shortages and rising costs, as noted by Associated General Contractors of Minnesota in an MPR News survey of over 170 firms. Wellness developer Bathhouse plans a massive 45,000-square-foot facility in Minneapolis North Loop by 2027, featuring pools, saunas, and a heated rooftop, Finance & Commerce reports. Meanwhile, the new Minnesota Climate Infrastructure Finance Agency is funding green projects like solar and battery storage at Minneapolis schools for emergency resilience hubs and energy-efficient workforce housing in Sandstone.
Education highlights include Westonka Public Schools topping state math and reading assessments in 2025, earning top district rankings from SchoolDigger and U.S. News, with ongoing high school renovations set for January openings. Mankato Area Public Schools approved a $1.18 million daycare project at Eagle Lake Elementary to address community child care needs.
No major recent weather events have disrupted the state.
Looking Ahead, watch for the Minnesota Paid Leave Law taking effect January 1, 2026, floor sessions resuming February 17, and continued construction momentum amid workforce hurdles.
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