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Greetings,
Minnesota’s fiscal analysts have given their most recent projections on the state’s economic condition, and those projections are on the decline.
SMALL SURPLUS NOW, MAJOR DEFICIT LATER
In February, Minnesota was expected to see a $1.7 billion budget surplus for the upcoming 2026-27 biennium. But due to projected reductions in income and sales tax revenues and higher spending for long-term care and special education, only a $616 million positive balance remains. Of the $1.1 billion projected decline in revenue, $926 million of that amount is based on an inflation estimate that is now required in future budget forecasts after Democrats approved the measure into law last session.
For Fiscal Year 2028-29, the outlook is even worse. Minnesota’s fiscal analysts note for that budget cycle, a $5.1 billion budget deficit is expected. An inflation estimate of $2.231 billion is included in that analysis.
Just two years ago, the legislative majority spent a nearly $20 billion surplus, raised taxes by an additional $10 billion, and grew state government spending by almost 40%. These fiscally irresponsible decisions are now causing Minnesota’s economic condition to worsen.
It’s clear our state cannot continue down the tax and spend path the Democrats have forced upon us. As a legislature, we need to find common sense ways to reduce spending, and we need to stop the fraud taking place within our government programs that has already cost Minnesota’s taxpayers hundreds of millions of dollars.
KEEP IN TOUCH
As always, I'm continuing to support constituent needs. Feel free to contact me anytime at [email protected] or by phone at 651-296-7808.
Have a good weekend,
Tim
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