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 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. Ben Davis, R-Mission Township, said this underscores the need for balance after Democrats in St. Paul spent the state’s nearly $18 billion surplus, raised taxes by $10 billion and increased the state budget by 40 percent with the budget they set in 2023.
“You can look at this report and say things are OK for now, but we cannot ignore the fiscal cliff Democrats created with full control of the Capitol,” Davis said. “The budget they passed last year was simply unsustainable, with a 40-percent state spending increase that even gives illegal immigrants free health care and free education. All the while, Democrats continue turning a blind eye to fraud and waste that is running rampant in our state, costing taxpayers hundreds of millions of dollars. And, to top it off, Democrats now are forcing taxpayers to pay a Democrat House member’s legal fees for a private matter.
“We cannot pry another nickel from hardworking Minnesotans until the state gets its own house in order and cleans up the mess Democrats created with total control in St. Paul. The good news is a new era of accountability and responsibility is about to arrive with Republicans gaining equal power in the House. Those automatic budget increases and continual bloating of government are coming to a halt, and we will get serious about rooting out waste and fraud. I will continue being the common sense conservative voice for our area.”
An updated February forecast will serve as the official framework for the 2025 session as legislators work to craft a new two-year state budget before adjourning in late May.
-30-