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.

“Everyone who manages their family budget knows when you’re spending more than you are taking in, it is bad,” Senator Rich Draheim (R-Madison Lake) said. “You would think that would urge caution, but that’s not what we are seeing. Democrats are still entertaining more spending bills this session, despite the risks to our financial footing and our credit rating. We cannot continue down the unsustainable path that Democrats charted last year. It is going to catch up with us – and soon.”

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.