ST. PAUL – The state issued a new economic forecast Thursday and Rep. Bernie Perryman, R-St. Cloud, said it reveals Minnesota’s excessive spending and rampant fraud are damaging the state’s bottom line.
The new economic report from Minnesota Management and Budget indicates state’s immediate outlook is in good shape, 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, so long as the state does not spend any of the current surplus dollars. If the current surplus is spent, the future deficit balloons to $5.4 billion.
“One party in full control of the Capitol made reckless budget decisions in the last biennium and, at the same time, refused to crack down on fraud that is bleeding our bottom line,” Perryman said. “Those who were in the trifecta can try to spin things seven different ways from Sunday to avoid taking responsibility but, in the end, it comes back to their failed leadership in St. Paul.
“Let’s start with the fact they increased state spending by 40 percent, blew the $18 billion surplus and still increased taxes by $10 billion. On top of that, spending for state programs continues to climb due to rampant fraud. That’s another significant factor that is costing taxpayers dearly while the governor and others in his party not only refuse to take meaningful action, but at every turn block Republican proposals to clamp down on this problem.”
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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