House Minority Leader Issues Statement as Projected Budget Surplus Soars to $3.7B, Deficit Looms in 2025

(KNSI) — On Thursday, the Office of Minnesota Management and Budget said the current two-year budget period, which runs through June 2025, is now expected to end with a surplus that’s $1.3 billion more than forecast when the last numbers came out in December.

The projected surplus has grown to just over $3.7 billion, thanks to increased tax collections and higher corporate tax revenues due to better-than-expected corporate profits, according to the MMB. Spending is still projected to exceed revenue by $1.5 billion leaving the state staring down the barrel of a potential deficit come July 2025.

House Minority Leader Lisa Demuth (R – Cold Spring) says any deficit is thanks to “Democrats’ irresponsible and unaffordable spending spree last session.”

She added, “Republicans have been warning since last session that this rampant spending will only hurt Minnesotans, and this forecast proves that.” Demuth and other Republicans are furious about Democrats spending the entire $17.5 billion surplus and also voted in favor of $10 billion in tax hikes. She says that will fuel a “massive 40% growth in government” and “Minnesotans deserve better. We should be looking for ways to scale back wasteful spending, exercise restraint this year, and budget responsibly instead of continuing the reckless spending spree from last session.”

Senate Tax Committee Chair, Democrat Ann Rest, said last year her party has “an insatiable appetite for raising taxes” and was not interested in more increases this session. Before the session started told reporters she had “only one word” for those hoping to pass significant new spending or asking for more tax increases. That word is no and vowed to block any attempts.

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