ST. PAUL – The state issued a new economic forecast Wednesday, projecting a $2.4 billion surplus in Minnesota for the current biennium – and a possible shortfall down the road.
The new economic report indicates the surplus is an increase of $808 million from the end of the 2023 legislative session, driven by higher collections of taxes and fees. Officials also report the current projected $2.4 billion surplus will be consumed by higher spending already in law over next two years, raising questions over a potential shortfall for the biennium starting in July 2025.
State Rep. Matt Bliss, R-Pennington, said this news underscores the need for balance in St. Paul after Democrats last May raised taxes by $10 billion and increased state spending by 40 percent despite a $17.5 billion state surplus.
“It’s unfathomable to think that in a matter of months one-party rule has taken our state from a $17.5 billion surplus to a potential shortfall in the next biennium,” Bliss said. “The bottom line is we need more balance in St. Paul because Democrats not only blew a chance for meaningful tax relief this year but caused Minnesotans to suffer the consequences for their record tax increases and reckless spending. Tax relief should still be a priority in the 2024 session, along with smart spending adjustments to bring about more long-term balance and stability in our state budget.”
A complete state budget was enacted for the current biennium last spring. An updated February forecast will serve as the official fiscal legislative framework for the 2024 session.
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