On Tuesday, Minnesota’s office of Management and Budget (MMB) released the results of a special budget projection that was commissioned in order to give legislators and the governor a clearer picture of the state’s budget health during the COVID-19 pandemic. In February, the state projected a surplus of $1.513 billion for 2020-21 budget cycle. The coronavirus and its economic fallout have erased that surplus, and the state is now facing a projected deficit of $2.43 billion. The $2.36 billion budget reserve remains available to mitigate the budgetary impact of the crisis.
Senator Carla Nelson (R-Rochester) released the following statement:
“The news of the state’s budget deficit is not welcomed but neither is it unexpected. As we have been navigating this public health crisis, revenues to the state have fallen and expenses have increased. This is a public health crisis and an economic crisis as well. Just like Minnesotans are doing all across our state, we must tighten our state pocketbooks.
“I had called for the governor to rescind his order prohibiting elective procedures, and I am glad he is doing so. It will help patients get the care they need and mitigate the economic hardship facing our medical providers. It is a good place to start but we must also look at how to safely restart our economy. I support the Economic Recovery Task Force led by Mike Vekich. We must get our economic engines churning again while protecting public health.”