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 on-going spending bills passed in 2024 could further increase the structural deficit.

Senator Andrew Mathews (R-Princeton) released the following statement on the February budget forecast:

“Though we may have a $3.7 billion surplus for 2025, our state has a $1.5 billion structural deficit. We are spending much more than we are taking in, and more baked-in spending will only heighten the problem. This is a direct result of the Democrats’ runaway spending spree last year.

“During the 2023 session, we saw the Democrat majority force their extreme and expensive agenda into law. They spent the entirety of the $18 billion surplus, but that still was not enough, as they raised your taxes and fees by nearly $10 billion.

“Minnesotans cannot afford another year of one-party Democrat control, and it’s critical to repair the damage done to our state budget and the pocketbooks of Minnesotans. We must be very careful this session and watch our spending closely.”