|
Hello from the State Capitol,
On December 4, Minnesota’s economic experts unveiled the state’s latest budget forecast.
For the remainder of the state’s current budget cycle, a projected $2.465 billion surplus is expected. The bad news? For the next budget cycle in 2028-29, Minnesota is expected to deal with a nearly $3 billion deficit.
The administration and previous legislature agreed to spend a nearly $19 billion budget surplus two years ago and grow state government spending by nearly 40%. We’re spending more than $60 billion on state government programs, so it’s not surprising that revenue collections can’t keep up.
In 2028 and 2029, Minnesota is projected to spend $5.4 billion more than it collects in taxes. If the legislature hadn’t cut spending last session, the deficit would be nearly 50% higher.
Reducing government spending last session was the right approach, and this forecast shows we’ll need to do it again next session if we want to avoid a future deficit situation.
With Christmas Day just around the corner, I wanted to wish you a very merry Christmas. Here's hoping you will be able to spend cherished time with your family and friends this season.
Merry Christmas and Happy New Year!
Greg
|
