The office of Minnesota Management and Budget (MMB) today released its annual February economic forecast. The report, which details the state’s budget picture, projects a surplus of $3.7 billion for 2025 after Democrats imposed $10 billion in tax increases during the 2023 session. However, Minnesota also faces a structural budget deficit of $1.5 billion, meaning Minnesota is spending more than it is taking in.

“A surplus built on $10 billion in tax increases shouldn’t distract us from the very real warnings in this forecast,” said Senator Bill Lieske (R-Lonsdale). “Minnesota is facing a structural deficit, meaning we are spending more than we are bringing in. It is the consequence of last session’s reckless spending spree, massive tax increases, and a budget that bloated government by another 40%. Now we have to be cautious and get this unsustainable spending under control., or the future is going to be really painful.”

On Tuesday, Senate Republicans unveiled their Repair Minnesota agenda aimed at fixing mistakes and reversing the consequences of bills that Democrats approved during the 2023 legislative session.