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. Mike Wiener, R-Long Prairie, 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.
“Wednesday's budget outlook confirms that Democrats’ tax and spend agenda is setting Minnesota on a path to financial ruin,” said Rep. Wiener. “With a projected $5 billion budget deficit, it’s clearer than ever that a course correction is needed. Minnesotans voted in November to put an end to Democrats’ reckless budgeting by ending their complete control of state government. House Republicans are ready to roll up our sleeves and get to work setting Minnesota on a brighter and more stable financial path in the years to come by putting Minnesota families and their budgets first.”
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