Lieske: Minnesota’s $6 billion budget deficit: How we got here and what needs to change

By: SENATOR BILL LIESKE

Minnesotans expect government to manage taxpayer dollars wisely. Unfortunately, the decisions made during the past two years have put our state in a bad financial position.

When Democrats held full control of the Legislature and the governor’s office, they spent every dime of our record $18 billion surplus, raised taxes by nearly $10 billion, and increased state spending by 40%. Now we’re facing a projected $6 billion budget deficit just around the corner.

This didn’t happen by accident. It is the result of decisions that simply spent way too much, way too fast.

Minnesota’s budget has grown dramatically over the past decade — from $39 billion in 2014 to $71 billion in 2024. That kind of spending growth simply isn’t sustainable. Despite Minnesota already having some of the highest taxes in the country and a giant surplus, Democrats still were so reckless that it left us facing deep deficits.

State spending is growing far faster than the money coming in. According to the budget forecast, spending is now outpacing revenue growth by 80%. Minnesota families know what happens when expenses keep climbing faster than income. It is only a matter of time before things fall apart, and we can see it just over the horizon.

Many Democrats have begun the process of blame shifting and deflection. They have suggested that uncertainty with President Trump and his policies are the problem. But that doesn’t hold up to the facts. The November forecast already predicted a $5 billion deficit before Trump even took office, and he was in office for just two weeks when this current budget report was created.

The reality is this massive deficit we are facing is the result of decisions made by Democrats right here in Minnesota — decisions that spent billions without regard for the future.

What’s frustrating is that Minnesotans saw little benefit from the record surplus we had. Despite suggesting they would provide big rebate checks (as much as $2,000, in fact), they instead spent the entire surplus and raised $10 billion of taxes on top of it.

These weren’t taxes on the rich. They were sales tax hikes, gas tax increases, tab fees, and more. Taxes that affect people who are trying to make ends meet.

Facing a $6 billion deficit, what is the plan? The governor’s proposal includes severe cuts to some of our most vulnerable neighbors, including nursing homes and disability service providers. And to make matters worse, his budget shifts hundreds of millions of dollars of costs onto counties, which would property tax increases to make up the difference.

Many of us warned about the consequences of the Democrat budget while they were trying to pass it, but those concerns were ignored. Moving forward, we need to be more thoughtful about how we spend taxpayer dollars.

Turning things around won’t be easy, but it’s possible. Over the past two years, Democrats used their one-party control to spend recklessly, leaving Minnesota on an unsustainable financial path. Now that the trifecta is over, we have a chance to restore balance. It’s time to focus on Minnesotans’ real priorities: a responsible budget that controls spending, cuts waste, and puts your needs ahead of government’s.