The office of Minnesota Management and Budget (MMB) today released its annual February economic forecast. The report, which details the state’s budget picture, projects a surplus of $3.7 billion for 2025 after Democrats imposed $10 billion in tax increases during the 2023 session. However, Minnesota also faces a structural budget deficit of $1.5 billion, meaning Minnesota is spending more than it is taking in.

“Governor Walz and legislative Democrats squandered a $19 billion surplus,” Senator Steve Drazkowski (R-Mazeppa) said. “It was a session of reckless spending, massive tax increases, and crushing mandates, and now we’re seeing the results – A temporary surplus built on massive tax increases on working Minnesotans and unsustainable structural deficits. One-party control in St. Paul has once again shown that Democrats simply cannot responsibly govern.”

On Tuesday, Senate Republicans unveiled their Repair Minnesota agenda aimed at fixing mistakes and reversing the consequences of bills that Democrats approved during the 2023 legislative session.