ST. PAUL – State spending could be reduced by billions of dollars under a new budget framework compromise reached by leadership in the Minnesota House.
Minnesota is facing a future budget crisis thanks to tax and spending decisions enacted into law last session by a legislative Democrat majority and Governor Walz. Their choice to spend an $18 billion surplus, raise taxes by more than $10 billion, and grow state government spending by 40% has left Minnesota facing a projected $6 billion budget deficit for the state’s next budget cycle.
“This is a reality check, as the state is projected to spend far more than it will have in available revenue,” said State Representative Marj Fogelman (R-Fulda). “If we do nothing, we are likely to see the largest deficit in our state’s history.”
Fogelman said the framework reduces state spending by $3.9 billion when compared to the 2024-25 budget and is $1.159 billion below the 2026-27 budget base. For the 2028-2029 projected budget, more than $2.6 billion in spending would be eliminated.
“If approved, this framework would represent the largest total spending cut in state history,” Fogelman said. “But it’s also important to remember that Democrats agreed to increase state spending by 40 percent last session, so Minnesota would continue to have a spending problem even if the entire framework becomes law. More work needs to be done before Minnesota is out of the woods, but this is a start.”
Fogelman added that the House must agree with the Minnesota Senate on budget spending decisions before session ends in mid-May.