Minnsights Blog

At the beginning of session, lawmakers had a nearly $18 billion budget surplus. This historic budget position could have provided relief for job creators and fuel the growth of Minnesota’s economy. Instead, a majority of this sum was promised to spending increases. The general fund budget increased $19.3 billion for 2024/25. That’s an increase of 37% and will put the state in a structural deficit for fiscal years 2026/27.

Despite a historic nearly $18 billion budget surplus and Minnesota’s already high-tax environment, this session the legislature increased taxes by nearly $10 billion over the next four years. Although some taxes decreased mostly for lowerincome taxpayers through one-time rebates and refundable tax credits, businesses and taxpayers at all income levels will see permanent cost increases. The process of passing these historic increases lacked transparency. Many bills and provisions were not introduced or allowed public testimony and the language was not provided until the night before a final vote. Minnesota’s corporate and incomes tax rates are already in the top five highest in the nation, which adds headwinds to investment, entrepreneurship, and talent recruitment and retention – all needed for a growing economy.

The Quarterly Economic Snapshot is an overview of key indicators measuring Minnesota’s current economic performance. Analysis is provided in partnership with Grow Minnesota! and the Minnesota Chamber Foundation.

The Grow Minnesota! program was founded in 2003 on a simple premise: chambers of commerce and economic development organizations can advance Minnesota’s economy by proactively connecting businesses to resources to grow and expand in the state. This has remained Grow Minnesota!’s core mission for nearly twenty years.

In the realm of fostering diversity, equity, and inclusion (DEI) in the workplace, the Minnesota Chamber and the Chamber Foundation stand out as trailblazers. As pioneers in their commitment to workforce DEI, we have embarked on a journey that not only sets an example but also provides essential resources to businesses seeking to build inclusive environments. Distinctive for being one of the first and only state Chambers to engage in DEI work to such a substantial extent, we are leveraging our trusted partnership with the business community and are grounded in a belief that building inclusive workplaces is not solely business imperative, but an economic imperative (based upon the changing demographics in our state and underrepresented demographics that are still unengaged in our workforce).