On Tuesday, Minnesota Management and Budget (MMB) released an updated budget forecast, which projects an estimated budget deficit of $2.426 billion for the 2020-2021 biennium. The updated forecast, which is used to guide consideration of spending bills at the legislature, anticipates dramatically lower revenues as a result of the coronavirus pandemic. In accordance with state law, the balance of the state’s budget reserve is $2.359 billion. In response, Senator Eric Pratt (R-Prior Lake) issued the following statement:

“The latest budget forecast shows how volatile our economy is right now in Minnesota and across the nation. We are just now beginning to see the devastating effects of the massive economic disruption caused by the coronavirus pandemic and I expect that trend to continue for the foreseeable future. We will not begin to see an economic recovery until we allow people to get back to work again.

“Policymakers need to be smart and reasonable as we move forward – particularly as we consider supplemental spending requests and a bonding bill. We need to be especially cognizant of our current economic state as we wrestle with the difficult choices that come along with balancing a budget amid a projected deficit. Before the pandemic, our economy was moving full steam ahead. My colleagues and I are ready to do all we can to make sure we see an economic boom again.”

The balance of the state’s budget reserve is $2.359 billion in accordance with state law. The 2020 legislative session must adjourn by May 18.

Senator Eric Pratt represents Scott County in the Minnesota Senate. He serves as chair of the Senate Jobs and Economic Growth Finance and Policy Committee and is an assistant majority leader.