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. Ben Davis, R-Mission Township, 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.
“Minnesota had a $17.5 billion surplus a matter of months ago, but Democrats went on such a reckless spending spree that even after raising taxes by $10 billion they have pushed our state to the brink of a shortfall,” Davis said. “I hope Democrats understand their one-party rule has placed our state on a truly unsustainable path, crushing Minnesota families and businesses along the way.
“We can provide meaningful tax relief and still get a handle on state spending to solidify our long-term outlook, as long as Democrats are willing to do the right thing. Minnesotans are getting sick of excuses and deserve more balance at the Capitol so let’s make it happen.”
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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