ST. PAUL – Minnesota’s economic officials recently unveiled their latest state budget forecast, and State Representative Paul Torkelson (R-Hanska) found reasons for concern.
“While the short-term numbers are better, the reasons for caution are even more pronounced,” Torkelson said.
For the current biennium, Minnesota is expected to see a $3.7 billion surplus in the current budget year (Fiscal Year 26-27), which is an increase of $1.3 billion from the November forecast. However, for the Fiscal Year 2028-29 budget cycle, a $3.4 billion structural deficit is projected.
Part of the economic uncertainty centers on federal money that may not be available if Minnesota refuses to comply with federal law. Torkelson said by failing to conform to federal guidelines regarding welfare benefits, such as requiring employment for able-bodied adults who receive government benefits and performing eligibility checks on those individuals every six months, our state is putting hundreds of millions of dollars of federal funds at risk.
“Because of the economic uncertainty, we need to be very careful when it comes to budget issues this session,” Torkelson said. “Every dollar spent this session will add to the future budget deficit during the next cycle. We must proceed with caution.”
Torkelson said final budget decisions for the remaining biennium must be made before session adjourns in mid-May.