ST. PAUL – State Representative Marj Fogelman (R-Fulda) said Minnesota’s economic outlook is worsening thanks to the tax and spend decisions made by Governor Walz and the legislative Democrat majority last session.
“They wasted a $20 billion budget surplus and raised taxes on Minnesotans by another $10 billion, and we have now begun to see the consequences,” Fogelman said. “While we do have some good news in the short term, even that surplus total has declined since February.”
Minnesota’s economic experts said 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.
Fogelman 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.
“We’ve seen rampant fraud in government programs and out-of-control spending under one party rule,” Fogelman said. “The era of recklessness is over, and we need to enact a budget that prioritizes struggling Minnesotans, not government agencies.”