The Minnesota Management and Budget (MMB) released the November budget forecast outlining the state’s financial picture on Wednesday. The forecast shows new taxes and fee increases lead to a $616 million surplus at the end of 2026 but a projected $5.1 billion deficit by 2029. 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.

“While the forecast shows a small, short-term surplus driven by the recent $10 billion in tax hikes on every single Minnesotan, the spending runs off a cliff leading to a massive deficit in just a few years,” Senator Robert Farnsworth (R- Hibbing) said. “Government spending increased 40% in the last budget, and nearly doubled in the last ten years.

“Minnesotans haven’t experienced that kind of windfall, and they are still struggling from inflation. We must take action now to slow the growth of government because raising taxes again just isn’t an option. We simply can’t afford to sustain this kind of spending off the paychecks of hard-working Minnesotans.”

The full state budget documents can be seen here: https://mn.gov/mmb/forecast/forecast/