Today the state released the December budget forecast, showing Democrat tax increases lead to a meager $616 million surplus at the end of 2026 and a massive $5.1 billion deficit by 2029. The forecast numbers do not account for any new spending, meaning that new spending bills passed in the next legislative session will further increase the deficit down the line.

Senator Eric Pratt (Prior Lake), Senate Finance Committee Republican Lead, released the following statement in response:

“What we are seeing in today’s numbers is a small, short-term surplus driven by the recent $10 billion in tax hikes on every single Minnesotan. Democrats have continued to employ a ‘spend more, tax more’ mentality, spending more than what is being brought in, which reflects an imminent deficit down the line.

“We got here by Minnesota Democrats spending the entirety of our historic $17.5 billion surplus, doing so in tandem with $10 billion in tax hikes, making Minnesota the 46th worst state when it comes to local tax burdens. Today’s news shows that those new tax increases were enough to avoid an instant deficit, but the spending is unsustainable. This forecast confirms what we’ve feared all along – out of control spending will lead Minnesota down an unsustainable path.

“The Democrat administrations have grown Minnesota government from a $39 billion general fund budget in 2014 to $71 billion in 2024 – that is an explosive rate that Minnesotans are not experiencing in their personal budgets. Families and taxpayers cannot afford to be treated as cash cows for the spending demands of Democrat constituency groups. 

“We need to focus more on relieving the pocketbooks of families across the state and rein in spending to a manageable point that eliminates discussions of a deficit. It’s time that we work to help Minnesotans by getting our state out of the top 10 highest tax burdens in the country.”