Minnesota Management and Budget (MMB) released the February Forecast last week, showing a projected balance of $3.7 billion for 2026-2027, $1.3 billion higher than estimates from November. However, spending continues to outpace taxes by $3.3 billion. The General Fund balance for 2028-2029 is now projected to be $377 million, and both the Budget Commissioner and State Economist have warned there is downside risk to the forecast.

Senator Eric Pratt (R-Prior Lake) released the following statement in response:

“Last week’s forecast shows spending continues to outpace revenue, putting our budget on an unsustainable path. While the updated budget balance is good news, helped by spending cuts made in the 2025 session, it will only cover so much of the long-term spending passed by Democrats in 2023 and 2024. S&P has updated its economic forecast for higher growth in the national economy in a way that eases financial burdens for many – it’s time for Minnesota to get on board. These numbers give us an opportunity to jump start our economy without over-taxing families. That means eliminating fraud, ending burdensome mandates, and investing in permanent and ongoing tax relief for families across the state.”