Last week the state released the February budget forecast, showing Democrat tax increases lead to a $3.7 billion surplus in 2025 and a $1.5 billion structural deficit beginning in 2026. The forecasted surplus does not account for any new spending, meaning that any ongoing spending bills passed in 2024 will further increase the structural deficit.

Senator Jeff Howe (R-Rockville) released the following statement in response:

“Last week’s news shows that the deficit will begin a year later than originally anticipated, but that doesn’t make the news any better. This really just proves what we’ve been concerned about all along—uncontrolled spending leads to ongoing deficits.

Minnesotans should be appalled at this mismanagement of money. Democrats spent the entirety of a $17.5 billion surplus last year, while also increasing taxes by $10 billion. Somehow those tax increases will not even be enough to sustain the Democrats’ spending.

This forecast also includes $1.137 billion in debt service for 2024-25, and an additional $1.35 billion in 2026-27. Instead of kicking the can down the road, we should pay off the state’s debt immediately and then move forward with a balanced budget, because where we’re at is unsustainable. Senate Republicans will work to stop the Democrats’ uncontrolled spending so we can work towards repairing our state’s budget. Minnesota families should not be forced to bear the financial burden of Democrats’ runaway spending.”