Minnesota’s Department of Management and Budget (MMB) today released its February revenue forecast, providing information and an outlook for Minnesota’s financial picture. The report shows the surplus increased an additional $1.324 billion from the November forecast for a total surplus of $3.715 billion in the current biennium. However, the budget outlook for the Fiscal Year 2026 – 2027 biennium shows a structural deficit of $1.478 billion. The deficit is forecasted as if the surplus will not be spent, meaning on-going spending bills passed in 2024 could further increase the structural deficit.

“I feel it’s apparent that Democrat tax and spend policies lead to a boom-and-bust state budget,” said Senator Gary Dahms (R – Redwood Falls). “They continue to entertain more spending this session while state officials urge caution, especially as the looming deficit signals risk to the state’s credit rating. Meanwhile, Minnesotans are struggling under $10 billion in new taxes passed last year while they hand over more tax money on their rebate checks.”

Minnesota is an outlier on nearly every level of tax policy nationwide. As a result of a 40% increase in state spending and implementation of $10 billion in new taxes during last year’s legislative session, Minnesotans of every income level will be paying more. The increased spending and taxes will put Minnesota’s budget in the red for years to come.

“Senate Republicans will work to repair the damage Democrats have done to the state’s budget and Minnesotans’ budgets,” continued Senator Dahms. “We will also support a modest, commonsense bonding bill that doesn’t threaten the state’s credit rating.”

To hear more of Senator Dahms’s comments, visit: https://www.facebook.com/sendahms/videos/2722000037948766

Senator Dahms is in his fifth term representing Senate District 15 which includes communities in Blue Earth, Brown, Chippewa, Lac qui Parle, Lyon, Redwood, and Yellow Medicine counties. He also serves as the Republican Lead on the Senate Commerce and Consumer Protection Committee and is a member of the Agriculture, Broadband, and Rural Development Committee and Finance Committee.