Minnesota Management and Budget released the latest state budget forecast, showing a $456 million projected surplus for the 2026-2027 budget cycle, and a $6 billion deficit for the 2028-2029 budget cycle.
Minnesota Business Partnership CEO Kurt Zellers commented:
“Two years ago, the DFL-led legislature and Governor Walz spent a record $18 billion surplus and raised $10 billion in new taxes and fees, sending our state’s budget into a sadly predictable deficit. Turning a budget surplus into a deficit is a blatant failure of fiscal leadership. This shows reckless overspending, poor planning, and a complete disregard for taxpayers who expect better from their elected officials.
Today’s forecast shows all Minnesotans the painful and foreseeable outcome of prioritizing political expediency over long-term economic stability, by spending one-time surplus funds for ongoing programs.
What this forecast shows all Minnesotans is fiscal responsibility isn’t just a choice; it’s now a necessity. Our businesses and taxpayers need a realistic and responsible bipartisan balanced budget. Minnesota needs an economically competitive approach—one that meets the state’s needs and strengthens our Headquarters Economy without more tax hikes.
The economic uncertainty ahead for Minnesota businesses and families requires our leaders to get this budget right. We are always ready and willing to work with legislators and Governor Walz for a budget approach that protects essential services while building a vibrant economic future for all Minnesotans.”