The latest Minnesota state revenue forecast comes out on Thursday, and it will set the tone with how lawmakers will craft a budget by the end of the current legislative session.
Like usual, the pre-forecast slings and arrows are flying.
"We have a budget mess here in Minnesota that the Democrats created when they had single party control for 2 years," says Republican State Senator Jordan Rasmusson (Fergus Falls) on the Sunday Take with Blois Olson.
Rasmusson says lawmakers in Saint Paul should look to how the federal government is trimming down waste and focus on services for people that need them.
"And the thing about the federal government is, because its budget is so big, if you're able to eliminate waste, fraud and abuse, you can actually generate quite a few savings," Rasmusson explains. "And I think we can do that at the state level. I think we can do that at the federal level, and we need to make sure that we're respecting the tax dollars that hardworking Minnesotans give us."
The latest revenue forecast came in December, and predicted a $616 million surplus at the end of the 2026-27 biennium. That was $1 billion less than prior estimates, which had a predicted $1.7 budget billion surplus during the 2026-27.
Rasmusson blames what he feels was 'out-of-control spending' when Democrats controlled both houses and the governor's office for the drop.
"There's a lot of opportunity to really focus on putting families first, to protect the most vulnerable that we have in society," says Rasmusson. "But we can't just continue to have this irresponsible spending, otherwise you're going to end up in a situation like Minnesota is, where we took a huge record surplus, and now we're looking at a very serious deficit."
Although the state’s revenue is expected to grow during the next fiscal biennium, officials in that December report said spending will exceed revenues throughout the budget horizon creating a budget deficit of $5.1 billion in fiscal years 2028-29.
“What you’ll see in this forecast is that Minnesota, like many other states, is facing significant financial headwinds,” Minnesota Management and Budget Commissioner Erin Campbell said during a December news conference announcing the numbers. “It will be especially important for lawmakers to take the long view when enacting budget decisions this year.”
That process may be even more complicated than usual given the uncertainty about how the House of Representatives will function with what is likely to be a 67-67 split between DFL and Republican members, pending a special election later this month. Currently, Republicans hold a slight 67-66 lead. But the DFL still controls the State Senate and of course there's DFL Governor Tim Walz which will make deal making between both parties a necessity to get a budget done.