ST. PAUL – Minesota’s economic experts unveiled their latest projections for Minnesota’s budget outlook. State Representative Marj Fogelman (R-Fulda) said the numbers continue to trend in the wrong direction.
“The last two projections have continued to show that Minnesota’s economic condition is worsening,” Fogelman said. “This is no surprise after an all Democrat-led legislature and Governor Walz wasted an $18 billion surplus last session, raised taxes by $10 billion, and grew government spending by nearly 40%. These reckless decisions have dramatically changed our state’s economic outlook.”
Fogelman said the state will see a $456 million budget surplus for the upcoming budget cycle. In December, budget analysts thought we’d see a $616 million surplus. A year ago, they thought we’d have a $1.7 billion surplus.
But the real bad news is the projection for the next budget cycle, which has grown from a $5.1 billion deficit to $6 billion – which approaches the largest deficit total in the state’s history.
“To think that in two years we have gone from a nearly $20 million surplus to a $6 billion deficit,” Fogelman said. “The awful tax and spend priorities put forward by Democrats last session have put the State of Minnesota in a terrible financial bind, and now difficult decisions will need to be made.”