On Wednesday, Dec. 4, Minnesota Management and Budget (MMB) released its annual November revenue forecast, providing information and an outlook for the state’s financial picture. Despite $10 billion in tax and fee increases imposed by Minnesota Democrats, the latest forecast shows a meager $616 million surplus at the end of 2026 and a massive $5.1 billion deficit by 2029. These 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.
“During the past two legislative sessions, Minnesota Democrats engaged in a reckless spending spree that wiped out the entire $19 billion surplus,” Senator Torrey Westrom (R-Alexandria) said. “Under their Democrat trifecta, the state budget was shamefully increased by nearly 40% in a single budget cycle. However, this was still insufficient to support their extreme agenda, leading them to raise taxes and fees by an additional $10 billion. My Republican colleagues and I repeatedly warned that such excessive spending levels would be unsustainable, and the latest budget forecast has confirmed our concerns. Our state has shifted from a healthy surplus to facing an uncertain financial future. Minnesotans deserve better, and we need to focus this session on rooting out waste, fraud and abuse, along with cutting back on excessive government spending.”
In the past decade, Minnesota’s government budget has nearly doubled from a $39 billion general fund budget in 2014 to $71 billion in 2024. The state now has some of the highest individual taxes and the 46th worst state and local tax burden in the nation.
Click here to read the full MMB November Budget and Economic Forecast.