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 new economic 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. Paul Novotny, R-Elk River, said this underscores the need for balance after Democrats used full control of the Capitol to spend the state’s previous $18 billion surplus, raise taxes by $10 billion and increase the state budget by 40 percent with the budget they set in 2023.
“Today’s economic report shows a substantial projected budget deficit and should put an immediate end to the years of automatic budget increases and reckless spending that has led to a bloated state government,” said Rep. Novotny. “In November, Minnesotans voted to restore balance to state government, and I am committed to bringing commonsense budgeting back to St. Paul by putting Minnesota families first, providing responsible funding only to programs that work, and rooting out waste, fraud, and abuse in our state budget.”
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