ST. PAUL – State officials issued an updated economic forecast Thursday and it shows Minnesota’s bottom line continues to decline, with a smaller short-term surplus and a growing deficit on the horizon.
The report from Minnesota Management & Budget calls for a $456 million projected balance for 2026-27, down $160 million from previous estimates. The projected general fund shortfall for the 2028-29 biennium is now $6 billion – $852 million worse than November estimates.
State spending growth outpaces revenue growth through projections for fiscal year 2029, MMB indicates. State Rep. Scott Van Binsbergen, R-Montevideo, said reality is setting in after Democrats in full control of the Capitol last biennium spent the state’s $18 billion surplus, raised taxes by $10 billion and increased the state budget by 40 percent with the budget they set in 2023.
“With complete control in St. Paul, Democrats went on a reckless spending spree, and those chickens are coming home to roost,” Van Binsbergen said. “They even provided free health care and education to illegal immigrants at the expense of hardworking taxpayers, with the health care portion alone costing around $100 million per year.
“House Republicans are working to restore balance now that we have broken up the trifecta of power. Minnesotans deserve better, a more responsible approach to protect taxpayers, and that’s exactly what I am working to deliver.”
The forecast figures will serve as the official framework as legislators work to construct a new two-year state budget before they are scheduled to adjourn in late May.
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