Minnesota is facing a tighter budget pinch with state officials having less money to work with for the next two-year budget. Lawmakers are also facing a larger deficit down the road if cuts are not made or new sources of revenue are not found. The state’s budget forecast shows lawmakers have $456 million in extra money, down from a prior estimate, with a potential future deficit growing to nearly $6 billion.
Minnesota Management and Budget Commissioner Erin Campbell highlighted the uncertainty of possible federal changes that could impact state allowances and urged caution. Democrats blamed the dip in the forecast on President Trump, with Governor Tim Walz stating that Trump’s chaos is wreaking havoc on the economy. Republicans, however, accused Democrats of putting the state in this situation with irresponsible spending.
House Speaker Lisa Demuth said the Democrats’ spending spree put Minnesota in an unsustainable position and now the focus is on addressing the $6 billion deficit. Democrats, on the other hand, pointed to Trump and federal tariffs as potential threats to the state’s economy. Overall, the budget situation in Minnesota is causing tension and finger-pointing between the two parties as they try to navigate the financial challenges ahead.
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