ST. PAUL – State Representative Marj Fogelman (R-Fulda) said Minnesota's February state budget forecast shows a positive balance of $3.7 billion for the remainder of the current fiscal year but projects a $1.5 billion deficit for the next budget cycle.
“It’s traditionally good news when you see the state has a budget surplus,” Fogelman said. “But when that same projection notes you have a significant budget deficit that will need to be dealt with next session, there’s no reason to celebrate.”
Fogelman said revenue forecast projections are created by analyzing financial decisions made in previous state budgets. In this case, last session the majority party spent a nearly $20 billion budget surplus, then raised taxes by another $10 billion, and crafted a budget that increased state spending by 40%.
Fogelman noted the $3.7 billion surplus must be allocated by the time session ends in May to keep the current budget in balance.
“People need to remember that any permanent spending increase approved this session will be tacked on to our projected budget deficit problem for next session,” Fogelman said. “Residents should know I will be fighting for fiscal restraint for the remainder of the session, as its clear Minnesota’s taxpayers are already contributing plenty to state government.”