On Thursday, Feb. 29, Minnesota Management and Budget (MMB) released its annual February revenue forecast, which provides an outlook for the state’s financial picture. The forecast shows Democrat tax increases leading to a $3.7 billion surplus in 2025 and a $1.5 billion structural deficit beginning in 2026. The deficit is forecasted as if the surplus will not be spent, meaning on-going spending bills passed in 2024 could further increase the structural deficit.

Senator Jordan Rasmusson (R-Fergus Falls) released the following statement on the February budget forecast:

“While the latest budget forecast shows a $3.7 billion surplus in 2025, this is not the full picture. If we look to the start of 2026, the state faces a $1.5 billion structural deficit. This means that we need to approach spending this session with great caution.

“Last year, Democrats raised your taxes by nearly $10 billion and grew government budgets by 40%. We cannot continue down this path of reckless spending, and that is why we need to focus on repairing the damage done to the state budget and the pocketbooks of hard-working Minnesotans.”