The office of Minnesota Management and Budget (MMB) today released its annual February economic forecast. The report, which details the state’s budget picture, projects a surplus of $3.7 billion for 2025 after Democrats imposed $10 billion in tax increases during the 2023 session. However, Minnesota also faces a structural budget deficit of $1.5 billion, meaning Minnesota is spending more than it is taking in.

“Democrats blew through a $19 billion surplus. The only reason they barely kept us in the black is they also hit Minnesotans with $10 billion in tax increases,” Senator Justin Eichorn (R-Grand Rapids) said. “But the consequences are just around the corner, as we are now facing a sizable structural budget deficit. We can’t trust Democrats to protect family budgets. They broke their promise to return last year’s record surplus, drove up state spending by 40%, and raised almost $10 billion in tax increases. It is irresponsible governing.”

On Tuesday, Senate Republicans unveiled their Repair Minnesota agenda aimed at fixing mistakes and reversing the consequences of bills that Democrats approved during the 2023 legislative session.