The office of Minnesota Management and Budget (MMB) today released its annual November economic forecast. The report, which details the state’s budget picture, projects a surplus of $2.4 billion for the 2024-2025 budget cycle. However, Minnesota state spending is projected to grow faster than tax revenue, leading to a projected budget deficit of $2.31 billion in the 2026-2027 fiscal year.

Senator Bill Lieske (R-Lonsdale) issued the following statement:

Despite countless warnings last session, Democrats chose a path of a reckless spending spree, massive tax increases, and a budget that bloated government by another 40% – all while breaking their promise to send the surplus back to taxpayers. Their approach turned a $19 billion surplus into a deficit of $2.31 billion on the horizon. We warned their approach was going to put Minnesota in a bad position, and now we are seeing that become reality. It was a stunning display of irresponsible budgeting, and Minnesotans can’t afford it anymore.