On Thursday, March 6, Minnesota Management and Budget (MMB) released its annual February revenue forecast providing information and an outlook for the state’s financial picture. The latest forecast shows Democrat tax increases lead to a meager $456 million surplus at the end of 2026 and a massive $6 billion deficit by the following budget cycle. The forecast numbers do not account for any new spending, meaning that new spending bills passed this legislative session will further increase the deficit down the line.

Senator Andrew Mathews (R-Princeton) released the following statement on the forecast:

“Minnesota went from an $18 billion surplus to a $6 billion budget deficit due to the Walz administration and Democrats’ reckless spending. Instead of practicing fiscal responsibility, they spent without restraint—leaving taxpayers to clean up the mess, all while imposing $10 billion in tax hikes. Last November, voters demanded an end to this out-of-control spending, but Democrats refused to listen. It’s time for Gov. Walz and the Democrats’ fiscal insanity to end, and work with Republicans to pass a smaller and more reasonable budget that doesn’t continue to crush Minnesotans.”

Under Democrat administrations, Minnesota’s government budget has nearly doubled from a $39 billion general fund budget in 2014 to $71 billion in 2024. Democrats have also raised taxes by $10 billion, making life more expensive for Minnesotans. The state now has some of the highest individual taxes and the 46^th worst state and local tax burden in the nation.

The February forecast will serve as a guide for the Minnesota Legislature in creating the upcoming two-year budget before the constitutionally mandated session deadline on May 19, 2025. Click here to read the full MMB November Budget and Economic Forecast.