On Thursday, March 6, Minnesota Management and Budget (MMB) released its annual February revenue forecast,providing information and an outlook for the state’s financial picture. The latest forecast shows a smaller $456 million surplus at the end of 2026 and a larger $6 billion deficit by 2029. The forecast numbers do not account for any new spending, meaning that new spending bills passed this legislative session will further increase the deficit down the line.
“The latest budget forecast is troubling news for Minnesota,” Senator Bill Weber (R–Luverne) said. “Our future deficit has surged to $6 billion, while the current surplus has dropped from $616 million to $456 million. This fiscal mess is the result of Governor Walz and Democratic leadership. Minnesotans deserve responsible budgeting, not reckless spending. This session, we must reach an agreement that stabilizes our finances. Instead of pushing costs onto counties, as Governor Walz has proposed, we should focus on real savings and smarter spending.”
Under Democrat administrations, Minnesota’s government budget has nearly doubled from a $39 billion general fund budget in 2014 to $71 billion in 2024. Democrats have also raised taxes by $10 billion, making life more expensive for Minnesotans. The state now has some of the highest individual taxes and the 46th worst state and local tax burden in the nation.
The February forecast will serve as a guide for the Minnesota Legislature in creating the upcoming two-year budget before the constitutionally mandated session deadline on May 19, 2025.