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Legislative News and Views - Rep. John Burkel (R)

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REP. BURKEL DISCUSSES LATEST STATE BUDGET FORECAST

Thursday, December 5, 2024

ST. PAUL – Minnesota’s economic experts unveiled a new state budget forecast recently, and State Representative John Burkel (R-Badger) said while there is positive news in the short term, our state’s long term economic projection is looking very ugly.

 

“The legislative majority chose to spend first and ask questions later last session,” Burkel said. “Because of these irresponsible financial decisions, what was once a nearly $20 billion budget surplus will soon become a $5.1 billion budget deficit.”

 

Burkel said state spending increased significantly after the legislative Democrat majority and Governor Walz agreed on a budget. Last session, Minnesota had a nearly $20 billion budget surplus. In addition to spending that historic surplus, Democrats also voted to raise taxes by another $10 billion. By the time session ended, Minnesota’s budget spending increased by 40% when compared to spending in the previous two-year budget cycle.

 

On December 4, Minnesota’s economic experts announced the state will see a $616 million surplus for the Fiscal Year 2026-27 biennium. This is $1.1 billion less than the number they estimated in February. Projected reductions in income and sales tax revenues and higher spending for long-term care and special education needs are contributing to the revenue decline.

 

Burkel said the outlook is even worse for the next budget cycle in Fiscal Year 2028-29, where a $5.1 billion budget deficit now looms.

 

“Expenses are eventually going to significantly outpace incoming revenues, and when a legislative majority decides to increase spending by tens of billions of dollars, they can’t be surprised when the numbers turn negative,” Burkel said. “We need to stop the outrageous spending, eliminate the government fraud that has already cost Minnesotans hundreds and hundreds of millions of dollars, and bring some common sense back to the Capitol.”