Minnesota Management and Budget (MMB) presented the state’s November budget forecast today, revealing the state’s spending is outpacing revenue. It projects a future deficit due to runaway spending, unchecked fraud, and slow economic growth hampered by billions in new taxes. According to MMB, the budget for fiscal year 2026–2027 includes a $2.465 billion surplus. However, in 2028–2029, the state is projected to have a $2.960 billion deficit. 

Sen. Jordan Rasmusson (R-Fergus Falls), Republican lead of the Senate Human Services Committee, released the following statement:

“The state of Minnesota’s spending continues to outpace revenue, creating a structural deficit. Under one-party control, Minnesota Democrats drained the $18 billion surplus and pushed the state budget to unprecedented and unsustainable levels. Their reckless overspending created a $10 billion tax increase that now impacts every Minnesotan.

“At the same time, more than a billion dollars has been lost to fraud under Governor Walz’s watch. Minnesota has become known as the fraud capital of the nation, making headlines for all the wrong reasons.

“This session, we must end the waste, fraud, and abuse that exploded under Governor Walz and Democrats. It is time for leadership that puts Minnesotans first.”

MMB notes “slow economic growth” as a major factor in revenue losses. According to the Minnesota Chamber of Commerce’s 2026 Business Benchmarks Report, “Minnesota’s economy is no longer keeping pace with the nation.” From 2019 to 2024, the state ranked 38th with 1% annual GDP per capita growth and 40th in labor force growth. Minnesota also ranks 41st in net domestic migration, meaning more people are leaving the state than moving in. 

Click here to read the full MMB November Budget and Economic Forecast.