The office of Minnesota Management and Budget (MMB) on Thursday released its annual February economic forecast. The report, which details the state’s budget picture, shows that Minnesota has a $456 million surplus for the current budget cycle. However, the report also reveals serious financial challenges ahead, including a projected $6 billion deficit for the 2028-2029 fiscal year.

Senator Carla Nelson (R-Rochester) issued the following statement:

“This budget forecast tells the stark, deeply concerning story of the Democrat trifecta: an $18 billion surplus spent, $10 billion in new taxes, and a 40% increase in state spending has left Minnesota facing a $6 billion deficit. We are spending $2.1 billion more than we are taking in, and the deficit is worsening. That’s not a formula for stability or success. It is a recipe for trouble.

“I will continue to push for smarter budget and spending decisions. That means eliminating waste and stopping fraud. It means spending taxpayer dollars wisely and effectively. And it means restoring financial stability to our state. Minnesotans deserve a responsible budget that works for them, now and for years to come.”

In the past decade, Minnesota’s government budget has nearly doubled from a $39 billion general fund budget in 2014 to $71 billion in 2024. The state now has some of the highest individual taxes and the 46th worst state and local tax burden in the nation.