ST. PAUL – In a year that started with so much hope that residents would receive significant and permanent tax relief, State Representative Greg Davids (R-Preston) said southeastern Minnesotans can now brace themselves for tax increases.
Despite the fact that Minnesota has a $17 billion budget surplus, Governor Walz, the Senate majority leader and the House Speaker – all Democrats – have decided to increase spending by $17.9 billion over the next two-year budget cycle.
“For legislative Democrats, there is never enough money to spend on state government,” Davids said. “It is almost laughable that they would look at a $17 billion surplus and think it makes perfect sense to use this as an opportunity to spend $18 billion, yet that is your majority party in action.”
Davids said the Democrats’ $17.9 billion in new spending represents a 35 percent increase from the current $52 billion budget, meaning state government spending during Fiscal Year 2024-25 will total more than $70 billion. Davids added that most of their spending priorities will be permanent.
Because the spending outpaces the available surplus resources, Davids said the Democrats will need to raise taxes in order to make the numbers work.
“You can’t make it up, the Democrats will actually be raising taxes when the state has a mammoth $17 billion surplus,” Davids said. “This is a time when Minnesotans were thinking they would actually receive permanent and significant tax relief. Instead, it’s just another year where their tax dollars will be wasted, and they will be forced to pay more to state government at a time when they are struggling financially.”
Davids said the specific tax increases the Democrats are prioritizing will be seen In their budget bills that will be debated on the House floor in the weeks ahead.