On Thursday, Feb. 29, Minnesota Management and Budget (MMB) released its annual February revenue forecast, which provides an outlook for the state’s financial picture. The forecast shows Democrat tax increases leading to a $3.7 billion surplus in 2025 and a $1.5 billion structural deficit beginning in 2026. The deficit is forecasted as if the surplus will not be spent, meaning ongoing spending bills passed in 2024 could further increase the structural deficit.

Senator Julia Coleman (R-Waconia) released the following statement on the February budget forecast:

“Last year, the majority party succeeded in spending the entirety of our state’s $18 billion surplus, but this was still not enough. They also raised taxes by $10 billion and grew government by nearly 40%. With the latest budget forecast, we are now seeing the consequences of Democrats’ excessive spending spree.

“While we may be looking at a $3.7 billion surplus in 2025, there is a $1.5 billion structural deficit starting in 2026. This means that our spending this session must be very limited. Minnesotans cannot afford another session like the last, and I will continue to fight to make life more affordable for Minnesota families.”