ST. PAUL – The state issued a new economic forecast Wednesday, projecting a $616 million surplus through the 2026-27 biennium – a decrease of $1.1 billion from previous estimates – and a significant future shortfall.
The report from Minnesota Management and Budget indicates reductions in income and sales tax revenues combined with higher spending for long-term care and special education result in a growing potential shortfall in the future. It also reveals a deficit of more than $5 billion through the 2028-29 biennium.
State Rep. Chris Swedzinski, R-Ghent, said this underscores the need for balance after Democrats in St. Paul spent the state’s $18 billion surplus, raised taxes by $10 billion and increased the state budget by 40 percent with the budget they set in 2023.
“The era of reckless spending, unnecessary tax increases and broken promises with Democrats in full control of the Capitol will come to an end this January with Republicans having gained equal power of the House,” Swedzinski said. “We’ll put an end to automatic spending increases that have bloated our government and will get serious about rooting out fraud and waste that’s run rampant under full Democrat control. I look forward to tackling these challenges as we work to set a new budget that is balanced and serves all Minnesotans.”
An updated February forecast will serve as the official framework for the 2025 session as legislators work to craft a new two-year state budget before adjourning in late May.
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