ST. PAUL – The Minnesota House has reached a bipartisan agreement on the framework of a new state budget, including the largest spending reduction in Minnesota history to address a looming shortfall.
State Rep. Bernie Perryman, R-St. Cloud, said legislators have agreed to cut $4 billion from the current budget, with an additional $1.2 billion reduction planned for 2026-27. Perryman indicated these spending cuts are necessary after Democrats, in full control of the Capitol, spent the state’s $18 billion surplus, raised taxes by $10 billion, and increased the state budget by $20 billion – a 40-percent hike – in 2023. As a result, Minnesota now faces a $6 billion shortfall.
“This agreement marks an important step toward putting our state on a sustainable path that is more affordable for Minnesotans – without cutting essential services,” Perryman said. “House Republicans are working to restore balance at the Capitol after two years of one-party control, and we are starting to see the results. In addition to getting state spending back in line, we will continue working to improve the bottom line by rooting out fraud, waste, and abuse in state programs.”
Perryman said the House will now use the agreement to shape finance bills funding various sections of the state budget for the next two-year cycle. Bipartisan support is required, with a 67-67 split in the House and 68 votes necessary to pass bills. The legislature faces a May 19 deadline to adjourn.
“We owe it to the people of Minnesota to pass good bills and get our work done on time,” Perryman said. “People don’t care that we lost valuable time when half the House stayed home for nearly a full month at the start of the session; they just want us to do our job. That means keeping our focus where it belongs and doing what’s right for Minnesotans. House Republicans will continue opposing tax increases and working to right-size our state budget.”
Education is one area of the budget where Perryman said different approaches will need to be reconciled. Gov. Tim Walz has proposed cutting more than $240 million in 2026-27 and another $445 million in 2028-29. His plan includes reductions to merit-based teacher compensation (Q Comp), special education transportation, and non-public pupil support.
Meanwhile, Perryman pointed out that school districts are struggling under the burden of more than 65 unfunded mandates imposed in 2023, including a new leave program, sick-time requirements, and unemployment insurance mandates for hourly school-year employees during the summer months.
“Minnesota students are falling behind, with half unable to read or do math at grade level, and these mandates have only made it harder for children to succeed in the classroom,” Perryman said. “House Republicans have launched the Save Our Schools plan to address micromanagement, mandates, and misplaced priorities in Minnesota’s K-12 education system. We need to return to common sense and let our schools focus on the classroom instead of piling on more and more mandates.”
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