ST. PAUL – State officials issued a new economic forecast for Minnesota Thursday, with a looming $1.5 billion shortfall through 2027 overshadowing a $3.715 billion surplus for the current biennium.
House Minority Leader Rep. Lisa Demuth, R-Cold Spring, said the forecast figures clearly indicate a more balanced approach is needed in St. Paul.
“This forecast shows Minnesota’s budget is still on the verge of a deficit thanks to our one-party control’s irresponsible and unaffordable spending spree last year,” Demuth said. “Republicans have been warning since last session that this rampant spending will only hurt Minnesotans, and this forecast proves that.
“Last session, the majority spent the entire $17.5 billion surplus and raised another $10 billion in taxes on Minnesotans to fuel a massive 40 percent growth in government. Minnesotans deserve better. We should be looking for ways to scale back wasteful spending, exercise restraint this year, and budget responsibly instead of continuing the reckless spending spree from last session.”
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.
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