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Fact check: Is this true? https://www.reddit.com/r/Conservative/comments/1jv50qd/tim_walz_took_mn_from_a_19_billion_surplus_to_a_6/

Checked on April 9, 2025

1. Summary of the results

The Reddit post's claim requires significant context. Minnesota's budget situation has evolved through several stages:

  • The initial $19 billion surplus was largely one-time money driven by pandemic-related federal spending [1]
  • The surplus decreased to $17.5 billion due to accounting changes in inflation recording [1]
  • More recent forecasts show a further reduction to $2.4 billion for the current fiscal period [2]
  • Currently, the state has a $616 million surplus, but faces a projected $5.14 billion deficit in future budget cycles [3]

2. Missing context/alternative viewpoints

The state's financial position has several important nuances not mentioned in the original post:

  • There is currently $3.7 billion in unspent budget funds and a $3.2 billion rainy day fund available [3]
  • State Economist Erin Campbell indicates there is time to address these budget challenges before they become critical [3]
  • The initial large surplus was extraordinary, being primarily driven by temporary pandemic-related federal spending [1]
  • The state is projected to face a structural imbalance of over $2.3 billion in the 2026-27 biennium [2]

3. Potential misinformation/bias in the original statement

The Reddit post appears to present a politically motivated oversimplification:

  • It implies a direct cause-and-effect relationship between Governor Walz's actions and the budget changes, when the situation is more complex
  • It omits the role of pandemic-related federal funding in creating the initial surplus [1]
  • The post ignores existing financial safeguards like the rainy day fund and unspent budget [3]

Two competing narratives benefit different groups:

  • DFL (Democratic) perspective: The situation is manageable due to existing financial reserves and time to implement solutions [3]
  • Republican perspective: The changes represent fiscal mismanagement through overspending [3]
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