The office of Minnesota Management and Budget (MMB) on Wednesday released its annual November economic forecast. The report, which details the state’s budget picture, projects a surplus of $2.4 billion for the 2024-2025 budget cycle. However, Minnesota state spending is projected to grow faster than tax revenue, leading to a projected budget deficit of $2.31 billion in the 2026-2027 fiscal year.

Senator Rich Draheim (R-Madison Lake) issued the following statement:

Last year we had a $19 billion budget surplus. Now we have a looming $2.3 billion deficit, stemming directly from the reckless spending of the Democrat-controlled legislature and Gov. Walz. You can’t spend an entire budget surplus and raise $10 billion in taxes and expect everything to be fine. Minnesotans simply cannot afford one-party Democrat control.