The office of Minnesota Management and Budget (MMB) today released its annual November economic forecast. The report, which details the state’s budget picture, shows that Minnesota is expected to have a $616 million surplus for the 2026-2027 budget cycle. However, the report also reveals serious financial challenges ahead, including a projected $5.1 billion deficit for the 2028-2029 fiscal year.
Even for 2026-2027, the state has a structural deficit of $3.1 billion. This means that without leftover money from the previous year, Minnesota would already be facing a large deficit instead of a small surplus.
Senator Rich Draheim (Madison Lake) issued the following statement:
“Minnesota’s budget picture should be much stronger, but reckless spending, waste, and abuse under Democrat control have left us with a massive looming deficit. They blew through a $19 billion surplus, increased spending by 40%, raised $10 billion in taxes, and now we are staring at a $5.1 billion shortfall just around the corner.
“This is Democrats gone wild – a total failure to govern responsibly. It hurts seniors on fixed incomes. It harms our most vulnerable neighbors. And it erodes what is left of the middle class.
“Minnesotans deserve better than reckless policies that drain resources and leave us with less revenue. It’s time to restore sanity to our budget, prioritize programs that work, and ensure Minnesota gets back on a path to smart, sustainable budgeting.”
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