On Thursday, March 6, Minnesota Management and Budget (MMB) released its annual February revenue forecast providing information and an outlook for the state’s financial picture. The latest forecast shows Democrat tax increases lead to a meager $456 million surplus at the end of 2026 and a massive $6 billion deficit by 2029. The forecast numbers do not account for any new spending, meaning that new spending bills passed this legislative session will further increase the deficit down the line.
Senator Mark Koran (R-North Branch) released the following statement on the forecast:
“The $6 billion budget shortfall is the direct result of reckless spending and mismanagement by Democrats and the Walz administration. They squandered an $18 billion surplus and turned it into a deficit, leaving hardworking Minnesotans to pay the price. Despite voters sending a clear message last November to rein in spending, Democrats doubled down—pushing the supplemental all funds budget for FY26-27 to a massive $131 billion. Now, taxpayers are left to bear the consequences of a broken budget and a Democrat deficit.”
Under Democrat administrations, Minnesota’s government budget has nearly doubled from a $39 billion general fund budget in 2014 to $71 billion in 2024. These figures reflect only the expenditures appropriated by the legislature, yet the supplemental all funds budget for FY26-27 totaled $131 billion. Democrats have also raised taxes by $10 billion, making life more expensive for Minnesotans. The state now has some of the highest individual taxes and the 46th worst state and local tax burden in the nation.
The February forecast will serve as a guide for the Minnesota Legislature in creating the upcoming two-year budget before the constitutionally mandated session deadline on May 19, 2025. Click here to read the full MMB November Budget and Economic Forecast.