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$1.2 Billion Budget Shortfall Shows Need for Responsible Spending, Pro-Growth Reforms

Dec 1, 2020 by AFP

ST. PAUL, MN – Following the release of Minnesota Management and Budget’s (MMB’s) November Budget and Economic Forecast that projected a $1.273 billion budget shortfall for the upcoming biennium, Americans for Prosperity-Minnesota (AFP-MN) today urged lawmakers to rethink government spending and protect Minnesotans from harmful tax and fee increases.

AFP-MN State Director Jason Flohrs issued the following statement:

“Lawmakers cannot solve their budget issues by increasing the tax burden on Minnesota families and business already struggling with the impacts of the pandemic and government limitations on their jobs and livelihoods.

“Instead, the state should pursue pro-growth reforms that will get our economy back on track, including tax relief, regulatory reform, and re-prioritizing and re-examining existing spending to set our state on a sustainable fiscal path. Blindly continuing the broken high taxes and spending status quo without additional oversight or review of non-performing programs will only further hinder our recovery at a time when Minnesotans can least afford it.

“Minnesota families and businesses have tightened their belts, innovated, and done more with less since this pandemic began. Government will have to learn to do the same.”


While today’s forecast was an improvement over projections made in early summer, with a surplus of $641 million in the final 6 months of this fiscal year, lawmakers will begin their work with a $1.273 billion deficit when the legislative session starts in January.

In the closing days of the regular session earlier this year, AFP-MN released a guide for lawmakers to help them navigate the challenges ahead, and prepare for the fiscal and economic crisis caused by COVID-19 and business shutdowns.