Minnesota Management and Budget today released a state economic forecast showing a projected $3.7 billion surplus for the current budget cycle (FY 24-25) and a $1.5 billion projected budget deficit in 2026-2027. Context: Last 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 nearly $10 billion.
Kurt Zellers, CEO of the Minnesota Business Partnership, released the following statement: “Less than a year after lawmakers spent every dollar of a record $17.5 billion surplus and raised taxes by nearly $10 billion, the state now has a modest surplus with a deficit looming in the next budget. The surplus is largely the product of higher revenues from Minnesota businesses, who already pay the highest business tax rate in the nation. The stark reality is clear: out of control spending and massive tax increases are unsustainable. I urge the legislature to fix the mistakes from last session, work across the aisle on good, bipartisan ideas and get the state back on solid financial ground. Our members are ready and willing to work with Governor Walz and any lawmakers who are committed to making 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.