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Jacob




Hello from the State Capitol,

 

On Thursday, Minnesota’s budget analysts shared their latest financial projections for the State of Minnesota.

 

The takeaway: without change, our long-term fiscal health looks bleak.

 

For the remainder of the state’s current budget cycle, a projected $2.465 billion surplus is expected. But here’s the problem: for the next budget cycle in 2028-29, Minnesota is expected to deal with a nearly $3 billion deficit. If the current budget surplus is fully spent next session, that projected deficit total is expected to jump to $5.4 billion.

 

We are facing this poor fiscal outlook thanks to the handiwork of Governor Walz and a Democrat legislative majority, who in 2023, decided to waste a $19 billion surplus, raise taxes by another $10 billion besides, and grow state government spending by nearly 40%.

 

Unbelievably, the Democrats are trying to blame President Trump for this. Again, let’s use some common sense. If the Democrats had not blown through a record-breaking surplus, and passed laws that permanently increased spending on their pet programs, we would likely be seeing continued surpluses. Instead, this is the second year in a row where the alarms have been sounded for a long-range deficit projection. It’s clear we have a spending problem.

 

It's also clear we have a fraud problem. Minnesota is well on its way to exceeding $2 billion lost to people who are scamming the system. Yet, the fiscal experts couldn’t give some accurate figures on its economic impact. How can billions of dollars in fraud not be contributing to the new forecast being three times worse than originally forecasted?

 

We’ve seen numerous scandals of fraud in our social services programs on the current administration’s watch, and the number literally is growing by the week. If Democrats had taken that fraud seriously instead of dismissing concerns and ignoring massive overruns, I’m told that deficit would be less than a third of what it is now.

 

Last session, with Republicans in co-control of the House, we implemented the largest spending cut in our state’s history. It’s a good thing we did, because the experts noted that without the reduction, the deficit projection would have been nearly 50 percent higher.

 

Minnesota is collecting more than enough of your tax dollars. This projection shows this state has a spending problem – and a fraud problem – and these issues must be addressed next session, as our state’s financial future depends on it.

 

Talk to you soon,

 

Steve









2481 Centennial Office Bldg.
658 Cedar Street
St. Paul, MN 55155
651-296-2273
[email protected]







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