ST. PAUL – State Representative Steve Jacob (R-Altura) said the state’s future economic outlook is concerning after reviewing the latest projections released by the Minnesota Management and Budget (MMB) office.
“Democrats wasted a $20 billion budget surplus and raised taxes by another $10 billion last session,” Jacob said. “No one should be surprised that projected expenses will soon outpace incoming state revenues.”
According to documents released by MMB, Minnesota is now projected to see a $2.3 billion budget deficit in Fiscal Year 2026-27. Higher estimates in health and human services and education raise the total state spending, resulting in the projected future deficit.
Jacob notes for the remainder of the current biennium, there is a projected budget surplus of $2.4 billion. But with a similar budget deficit looming in the years ahead, Jacob said this money is no surplus at all as it is needed to cover the future shortfall.
“Democrats senselessly increased state spending by 40 percent last session, and that bill will soon be coming due,” Jacob said. “Not one dollar of what is being labeled as surplus funds should be used on state spending next session, or else the deficit during the next budget cycle will continue to worsen.”