Friends and neighbors,

The office of Minnesota Management and Budget (MMB) on Thursday released its annual November economic forecast, which provides a picture of the state’s budget picture. According to MMB, the budget for fiscal year 2026-2027 includes a $2.465 billion surplus, even while spending outpaces revenues. However, looking to 2028-2029, the deficit balloons to $5.4 billion as spending is projected to outpace revenues. Only by not spending the surplus would the 2029 deficit projection reduce to $2.960 billion.

This is the biggest takeaway: We are looking at yet another deficit on the horizon as a direct result of Gov. Walz and the Democrats’ reckless management. They burned through an $18 billion surplus, imposed billions in new taxes and fees, and have refused to do anything about this state’s massive fraud problem. Yes, we have a temporary surplus on paper that was created on the backs of Minnesotans are paying billions more in taxes. But the long-term deficit projection tells the real story. Spending is out of control and Gov. Walz is either unwilling or unable to stop the fraudsters stealing your tax dollars.

Their mismanagement is harming families, seniors, small businesses, and every taxpayer who is already stretched thin. The goals for next session are simple: stop the fraud, eliminate the waste, return to disciplined budgeting, and bring common sense back to state government.

If you want to read the full forecast documents, they are available here:

** November 2025 Budget and Economic Forecast (PDF)

** November 2025 Budget and Economic Forecast Presentation (PDF)

If you have any questions, please let me know.

God Bless,