Today the state released the December budget forecast, showing Democrat tax increases lead to a meager $616 million surplus at the end of 2026 and a massive $5.1 billion deficit by 2029. The forecast numbers do not account for any new spending, meaning that new spending bills passed in the next legislative session will further increase the deficit down the line.

Senator Karin Housley (R-Stillwater) released the following statement in response:

“Today’s news confirms exactly what we’ve been concerned with – raising taxes will cover spending increases for now, but it is not a long-term solution that our state can afford. Just a few short years ago, we had a historic surplus that was squandered away in record time, coupled with over $10 billion in new tax hikes. Minnesotans cannot afford this to be the new normal.

We’re seeing the long-term effects of what Democrats have been doing – they have grown Minnesota government from a $39 billion general fund budget in 2014 to $71 billion in 2024. Minnesota is already ranked the 46th worst state when it comes to local tax burdens and families in this state cannot afford any more in new tax hikes.

We need to focus on repairing the budget and getting our state’s finances in order. Minnesota families deserve to know we are working to keep life affordable, and that means repairing the budget so they don’t have to worry about higher taxes in 2025 and beyond.”