Today the state released the December budget forecast, showing a $616 million surplus at the end of 2026, which is $1.1 billion less than anticipated, and a long-term budget deficit projected to be $5.1 billion in FY2028-29. 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 Michael Kreun (R-Blaine) released the following statement in response:

“Today’s announcement confirms what we expected to be true: higher taxes and reckless spending is unsustainable. Just two years ago, we had a historic surplus in excess of $17.5 billion. Democrats squandered the opportunity to make life more affordable for Minnesota families, and instead, spent the surplus and raised taxes on Minnesotans by $10 billion. Those tax hikes are maintaining a small surplus now, albeit significantly less than anticipated, but they are not able to support to the ongoing out-of-control spending that Democrats have engaged in, as evidenced by the large looming deficit.

Minnesota taxpayers should not be footing the bill for Democrats’ mismanagement of our state. Democrats have grown Minnesota government from a $39 billion general fund budget in 2014 to $71 billion in 2024. Minnesotans are not feeling that same growth in their personal budgets, and they cannot afford any more in tax hikes when Minnesota is already ranked the 46th worst state when it comes to local tax burdens.

The spending is unsustainable – it will lead to higher, long-term taxes down the line, and Minnesota families cannot afford that fate. As a state, we need to become fiscally responsible, repair the damage done to our state’s budget, and get our finances in order.”