Minnesota Management and Budget today released a state economic forecast showing a projected $2.4 billion surplus for fiscal years 24-25, but there is a projected budget deficit for the following biennium. The “significant structural imbalance” in FY 26-27 is the result of higher estimated spending on health and human services and education. Context: Earlier this year DFL lawmakers passed a $72 billion state budget (increasing spending by 38%), used every dollar of a record $18 billion surplus, and raised taxes by more than $9 billion. And in January, Minnesota will officially have the highest business tax rate in the United States.
Kurt Zellers, CEO of the Minnesota Business Partnership, released the following statement: “Today’s forecast gives state lawmakers a stark warning: uncontrolled spending and high taxes threaten Minnesota’s economic future. In January of this year Minnesota had an $18 billion surplus; now, after growing the budget by 38% and increasing taxes by $9 billion, the state faces a projected budget deficit soon. It’s time to stop passing tax and budget policies that stifle economic growth and increase costs for Minnesota businesses and families. We look forward to finding opportunities to work with the Governor and lawmakers next session to make Minnesota more competitive.”
About the MBP
The Minnesota Business Partnership is comprised of more than 100 CEOs and top executives from Minnesota’s largest employers. Representing a broad range of business interests, political perspectives and personal philosophies, they are united by the Partnership’s mission: Maintain a high quality of life for all Minnesotans by ensuring that the state’s economy remains strong and globally competitive.