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.
State Rep. Shane Mekeland, R-Clear Lake, said the forecast figures clearly indicate a more balanced approach is needed in St. Paul.
“The fact revenue continues to surpass previous projections should not surprise anyone given the price increases we’ve experienced in this Biden/Walz economy. Everything costs more so, guess what? The state is collecting more sales taxes.
“But there is still a projected shortfall in the next biennium because Democrats spent the $17.5 billion surplus to fuel a 40-percent increase in state spending. The spending path they put us on is unsustainable and should not be forgotten. Neither should the fact they promised to fully eliminate the state tax on Social Security and provide $2,000 rebates – only to break their promise and instead spend that money catering to activists and pet projects in general. We need more balance in St. Paul to restore stability in our state.”
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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