State Representative Paul Anderson of Starbuck.
PRESS RELEASE ON APRIL 2
The Minnesota House has reached bipartisan agreement on the framework of a new state budget that that includes the largest spending reduction in Minnesota history to address a looming shortfall.
State Rep. Paul Anderson, R-Starbuck, said legislators have agreed to cut $4 billion from the current budget, with an additional $1.2 billion reduction in 2026-27. Anderson said reduced spending is essential after Democrats in full control of the Capitol spent the $18 billion surplus, raised taxes by $10 billion and increased the state budget by $20 billion – a 40-percent hike – in 2023. The state now faces a projected $6 billion shortfall.
“Although Minnesota is not in a deficit situation yet, we need to start making adjustments in our spending so that we are not facing a huge, multi-billion-dollar shortfall in two years,” Anderson said. “We also have time to continue working on eliminating fraud, waste and abuse in state programs that is harming the state’s bottom line.”
Anderson said the House now will use terms of the agreement to assemble a series of finance bills to fund various sections of the state budget for the two-year cycle starting June 30. The legislature faces a May 19 deadline to adjourn. Bipartisan support is requisite, with a 67-67 split in the House and 68 votes necessary to pass bills.
Education is one area of the budget where Anderson said different approaches need to be reconciled during the budget process. Gov. Tim Walz proposes slashing more than $240 million in 2026-27 and another $445 million in 2028-29. This includes cutting merit-based teacher compensation (Q Comp), special education transportation, and non-public pupil support.
“Our school districts already are feeling the pinch from more than 65 unfunded mandates that were put on them in the last two years,” Anderson said. “A new leave program, sick-time provisions, and unemployment insurance mandates are among changes impacting districts the most. We need to work on common-sense solutions and flexibility so schools can focus on helping students in the classroom.”
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