District 21B Rep. Marj Fogelman, a Fulda Republican, noted in a recent press release that Minnesota's February state budget forecast shows a positive balance of $3.7 billion for the remainder of the current fiscal year but projects a $1.5 billion deficit for the next budget cycle.
Said Fogelman: “It’s traditionally good news when you see the state has a budget surplus But when that same projection notes you have a significant budget deficit that will need to be dealt with next session, there’s no reason to celebrate.”
Fogelman explained that revenue forecast projections are created by analyzing financial decisions made in previous state budgets. In this case, last session the majority party spent a nearly $20 billion budget surplus, then raised taxes by another $10 billion, and crafted a budget that increased state spending by 40%.
Fogelman added that the $3.7 billion surplus must be allocated by the time session ends in May to keep the current budget in balance. She said: “People need to remember that any permanent spending increase approved this session will be tacked on to our projected budget deficit problem for next session. Residents should know I will be fighting for fiscal restraint for the remainder of the session, as its clear Minnesota’s taxpayers are already contributing plenty to state government.”
