Anthony Becker Says Inflation Could Worsen Minnesota Deficit
Minnesota is heading toward financial trouble. The budget is not balancing. The deficit just jumped to $6 billion. The government is scrambling to find solutions. State economist Anthony Becker says inflation is making it worse.
Prices keep rising. Businesses are struggling to keep up. Higher costs are affecting spending. Becker warns that inflation could trigger interest rate hikes. That would slow business investment. It would reduce tax revenue. The economy would take a hit.
Anthony Becker Says Federal Cuts Could Hurt Minnesotaโs Economy
Federal budget decisions could also make things worse. The U.S. House wants major spending cuts. Medicaid could take a massive hit. If that happens, Minnesota could lose up to $1.6 billion per year.
One-third of Minnesotaโs budget comes from federal funds. If those funds disappear, the state must find other solutions. Becker says this would create more pressure on the economy. He says leaders must prepare for all possibilities.
Anthony Becker Breaks Down Minnesotaโs Spending Challenges
Government spending is increasing fast. Long-term care costs are rising. Special education demands more funding. The state must decide where to cut. Some leaders want to raise taxes. Others say spending must go down.
Governor Walz proposed a budget plan in January. He wants a mix of tax increases and spending reductions. He believes this will help stabilize future budgets. Republicans strongly disagree. They say cuts should be deeper. They blame the 37% spending increase in 2023.
Anthony Becker Predicts Economic Slowdown for Minnesota
Becker expects the economy to slow down after 2025. Growth will be weaker. Inflation will stay above 3%. Interest rates may remain high.
Minnesotaโs economy is strong now. Jobs are stable. Wages are going up. But trade policies, federal cuts, and rising costs create major risks. Becker says leaders must plan carefully. He warns that uncertainty could impact Minnesotaโs long-term financial health.
