Mekeland: 'Mismanagement' of state causes shaky budget outlook

ST. PAUL – The state issued updated economic data Thursday and Rep. Shane Mekeland, R-Clear Lake, said Minnesota’s outlook is shaky after massive increases in taxing and spending while rampant fraud continues bleeding taxpayers.

The new economic report from Minnesota Management and Budget indicates the state’s immediate future is stable, 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. If the $2.5 billion surplus is spent, Mekeland said, the future deficit balloons to $5.4 billion.

This, Mekeland said, comes after Democrats in full control of the Capitol increased state spending by 40 percent, used up the state’s $18 billion surplus and raised taxes by $10 billion in the last biennium.

“We are looking at a weaker long-range economy in Minnesota, which is largely the result of poor management of our state under the former Democrat trifecta,” Mekeland said. “With full control of the Capitol, Democrats went on an unprecedented spending spree, raised taxes by historic amounts and blew our $18 billion surplus. All the while, they not only failed to get serious about cracking down on our state’s serious fraud problem but also blocked House Republican efforts to do so.

“Meanwhile, statewide property taxes are up a billion dollars because of unfunded mandates the governor and other Democrats pushed on counties and school districts. On top of that, this forecast also projects falling job growth in large part because of other unfunded mandates the governor and Democrats placed on businesses, such as paid leave. It all leaves Minnesotans with less money in their pocket as our government keeps growing and spending more. It is complete mismanagement of our state and we should be taking the opposite approach by getting a grip on spending and rooting out fraud.”

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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