ST. PAUL – State officials issued a new economic forecast Thursday, with a looming $1.5 billion shortfall through 2027 overshadowing a $3.715 billion surplus for the current biennium.
State Rep. Matt Bliss, R-Pennington, said the forecast figures clearly indicate a more balanced approach is needed in St. Paul.
“The state budget Democrats created with full control of the Legislature has led us from a $17.5 billion surplus to a projected shortfall in less than one year,” Bliss said. “Just let that sink in for a minute: They spent the $17.5 billion surplus, raised taxes by $10 billion and increased state spending by 40 percent at a time Minnesotans already were facing record price increases.
“This path the majority put us on simply won’t work. It’s reckless and unaffordable and just proves we need more balance at the Capitol. Democrats promised a quick tax bill fix, a full elimination of the tax on Social Security, and $2000 rebate checks for Minnesotans. Regardless of the forecast numbers, they need to honor those promises instead of continuing to break them.”
The state is fully funded for the current two-year cycle, meaning no additional state spending is necessary this session. The new bottom line will guide legislators through supplemental fiscal considerations the rest of the 2024 session.
-30-