Dotseth: Forecast shows more work needed to steady state’s budget

ST. PAUL – State officials issued an updated economic forecast Friday and state Rep. Jeff Dotseth, R-Kettle River, said it shows more work is needed to get a grip on spending and stabilize Minnesota’s fiscal course.

Minnesota Management and Budget’s February 2026 forecast projects a $3.7 billion surplus for the 2026–27 biennium, up $1.3 billion from November. These improvements are largely driven by higher expected revenues from a stronger economy, MMB indicates.

Even with current surpluses, MMB indicates Minnesota is projected to spend more than it collects each year. Dotseth said this is due, in part, to the former Democrat trifecta spending Minnesota’s $18 billion surplus, raising taxes by $10 billion and increasing state spending by 40 percent.

“Last year, House Republicans delivered the largest reduction to government spending in state history,” Dotseth said. “But even that wasn’t enough to dig us completely out of the hole that was caused by reckless spending and unnecessary tax increases passed by the former trifecta. Our state faces a real reckoning because the path we’re on is simply unrealistic and unaffordable.

“Minnesota families and businesses already are overburdened, so tax increases should be non-starters this session. We actually need to be going the opposite direction by looking at ways we can make life more affordable in our state. Let’s start by passing legislation that would allow Minnesotans to capitalize on federal changes, such as no taxes on tips or overtime.”

While it is not an official budget year at the Capitol, with the state fully funded for this biennium, Dotseth said the legislature also could improve the state’s bottom line by cracking down on fraud that’s been rampant in the state, costing taxpayers and estimated $9 billion.

“Minnesotans deserve a government that protects taxpayers, not one turns a blind eye and then asks families to cover the losses,” Dotseth said. “We need to bring back honesty, integrity, and accountability in our state government with a practical, common-sense solutions. The fraudsters and anyone else who may have enabled theft from taxpayers must be held accountable.”