Friends and neighbors,
Minnesotans are careful with their budgets. They set priorities, plan for the future, and live within their means. Unfortunately, Minnesota state government is failing to show the same responsibility.
Twice a year, Minnesota Management and Budget outlines the state’s financial outlook. The latest forecast projects an initial $3.7 billion surplus for the current two-year budget cycle. However, it also shows Minnesota continues to spend more than it takes in, a warning sign that significant budget deficits could be ahead.
It is important to remember that government does not create a surplus on its own. This surplus, like all surpluses, is built on the hard work of Minnesota’s businesses, farmers, and working families. It also reflects years of over-taxation by state government.
During 2023 and 2024, under one-party control, Governor Walz and Democratic legislative leaders spent the entire $19 billion surplus and expanded government by nearly 40%. The state budget grew from $52 billion in the 2022–2023 biennium to $72 billion in the 2024–2025 biennium. Lawmakers also approved roughly $10 billion in new taxes and fees that drive up costs for Minnesotans. Today, the Tax Foundation ranks Minnesota 44th out of 50 states for tax competitiveness.
At the same time government spending surged, Minnesotans were promised broad tax relief. Instead, the relief delivered was modest compared to the scale of new spending and tax increases. Families across the state are still dealing with rising costs for housing, groceries, childcare, and everyday necessities while government continues to grow.
Even more concerning is the fraud crisis that has placed Minnesota on the national stage. Billions of taxpayer dollars meant to help seniors, the disabled, and vulnerable Minnesotans have been lost through fraud and mismanagement. Minnesotans deserve answers and accountability, and Senate Republicans have an action plan to stop the fraud. The plan focuses on three key objectives: stricter legislative oversight, smarter use of technology to verify services, and stronger accountability for taxpayer dollars.
Several programs have seen dramatic spending increases in recent years. Minnesota’s autism services program saw total payments to providers increase roughly 3,000% from about $6 million in 2018 to nearly $192 million in 2023. The Housing Stabilization Services program was initially projected to cost about $2.6 million annually, but payments grew to over $107 million by 2024. These are just a few examples that raise serious questions about oversight and accountability.
In some cases, whistleblowers raised concerns about fraud and abuse early on, yet their warnings were ignored. When taxpayer dollars are involved, transparency and accountability must be the rule, not the exception.
The latest budget forecast is also a reminder that while the national economy remains strong, Minnesota is lagging behind. According to the Minnesota Chamber of Commerce’s 2026 Business Benchmarks Report, from 2019 to 2024 the state ranked 38th in annual GDP per capita growth at just 1%. During that same period, Minnesota ranked 40th in labor force growth. The state also ranks 41st in net domestic migration, meaning more people are leaving Minnesota than moving here.
Minnesota’s growing tax burden, expanding regulations, and unfunded mandates are contributing to these trends. Schools, cities, counties, farmers, businesses, and families are all being asked to do more with less while new state requirements continue to pile up.
Senate Republicans have introduced proposals aimed at providing targeted tax relief and restoring balance. These include efforts to limit sharp increases in property taxes, reduce vehicle tab fees that have risen in recent years, and align Minnesota’s tax code with federal changes, eliminating taxes on tips and overtime pay so workers can keep more of what they earn.
Minnesotans understand something that government too often forgets: every dollar spent by government first comes from a taxpayer who worked to earn it.
Former President Ronald Reagan once joked that the nine most terrifying words in the English language are “I’m from the government, and I’m here to help.” While meant in humor, it reflects a real concern when government grows too large and loses accountability.
It is time to change course. State government should make life easier, not harder. That means addressing fraud and mismanagement, respecting taxpayers, and focusing on policies that make Minnesota more affordable.
Instead of asking more from Minnesotans, government should do more to support them and the challenges they face every day.
Sincerely,
Gene