Today 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 deficit beginning in 2026. The new surplus forecast does not account for any new spending, meaning that new spending bills passed in 2024 will further increase the deficit.

Senator Michael Kreun (R-Blaine) released the following statement in response: 

“Today’s announcement is disappointing and confirms exactly what we expected to be true: the unsustainable spending from the last year means that Minnesota will have to contend with a severe deficit. Minnesota had a $17.5 billion surplus last year, but Democrats spent nearly all of those funds while simultaneously implementing $10 billion in tax hikes. Despite those tax hikes, the spending increases were so steep that Minnesota will be facing a deficit beginning in 2026, which will continue to grow every year after.

Minnesota taxpayers should not foot the bill for the Democrats’ mismanagement of the state budget. I’m concerned this will lead to higher, long-term taxes down the line. As a state, we need to become fiscally responsible, repair the damage done to our state’s budget and get our finances in order.”