Swedzinski: Major spending increase, rampant fraud put state on brink of shortfall

ST. PAUL – The state issued a new economic forecast Thursday and Rep. Chris Swedzinski, R-Ghent, said it shows decisions Democrats made with full control of the Capitol have put Minnesota on the brink of a significant shortfall.

The new economic report from Minnesota Management and Budget indicates state’s immediate outlook is fine, with a projected surplus of $2.5 billion in the current budget. But the forecast also reveals a significant structural imbalance, with a $3 billion shortfall in 2028-29, so long as the state does not spend any of the current surplus dollars. If the current surplus is spent, the future deficit balloons to $5.4 billion.

Swedzinski said the concerning outlook is largely the product of excessive spending, rampant fraud and anti-jobs policies enacted by the former Democrat trifecta in 2023-24. He said Democrats raised state spending by 40 percent, spent the state’s $18 billion surplus and increased taxes by $10 billion during the last biennium.

“It’s nice that Minnesota’s short-term budget looks solid,” Swedzinski said. “But that projected shortfall is rather concerning, and we should deal with it in the 2026 session to ease the pressure when we put together the next budget in 2027.

“This just shows why we still need a more balanced approach at the Capitol, especially after the decisions made under one-party control when Democrats spent our state into oblivion, refused to crack down on rampant fraud and continued passing extreme policies that will only make it even more expensive to do business in our state. We need to be expanding job opportunities in Minnesota, but the forecast shows Democrat decisions are having the opposite impact by chilling our future job market.”

A complete state budget was enacted for the 2026-27 biennium last spring. An updated February forecast will serve as the official framework for supplemental budget work in the 2026 session.

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