Today the state released the December budget forecast, showing a $616 million surplus at the end of 2026, which is $1.1 billion less than anticipated, and a long-term budget deficit projected to be $5.1 billion in FY2028-29. 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 Jeff Howe (R-Rockville) released the following statement in response:

“This news is proof that uncontrolled spending leads to long-term deficits. Minnesota families should be appalled at this unacceptable mismanagement of their tax dollars. Just a few years ago, our state had a historic surplus that was completely ran through in record time. During that same time, the Walz Administration and Democrats raised taxes by $10 billion. Somehow those increases lead us to a minimal surplus in 2026, but a massive looming deficit is on the horizon by 2029. This spending is not sustainable. 

The Walz Administration and Democrats have grown Minnesota government from a $39 billion general fund budget in 2014 to $71 billion in 2024. Minnesota taxpayers cannot afford to financially carry the Democrats’ mismanagement of our state and its budget when Minnesota is already ranked the 46th worst state when it comes to local tax burdens.

We need to step up for families in our state, and that means getting our budget under control and making life more affordable. Minnesota families should not be forced to bear the financial burden of runaway spending by the Walz Administration and Democrats.”