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.

“There is a giant warning sign in this forecast,” Senator Mark Koran (R-North Branch) said. “Minnesota is spending way more money than it’s bringing in. We have a surplus because Democrats raised taxes by $10 billion on working Minnesotans, not because of responsible governing. We’ve got to be cautious now. If we don’t get the structural deficit under control, Minnesotans will be on the hook for even higher taxes.”

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.

“Last session we saw the dangers of one-party control of government,” Senator Koran said. “We’re better off if we work together, if we compromise, and if we pay attention when people express worry about unintended consequences of what we are working on. I wish last session would have been more bipartisan, but it wasn’t, so our agenda this year is going to focus on repairing as many of the mistakes as we can. We must get back on solid footing.”