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 because of the coronavirus pandemic. In accordance with state law, the balance of the state’s budget reserve is $2.359 billion.

In response, Senator Bill Ingebrigtsen (R-Alexandria) issued the following statement:

“This week’s budget forecast delivered devastating news and delivers a new financial picture that represents a nearly $4 billion shift that what we expected just a few months ago. While we anticipated a rescission as a result of COVID-19, the impact on the economy and the resulting shutdown order have had greater effects on Minnesota’s workers, businesses, and revenue projections than anyone could have thought.”

“These numbers show that all of Minnesota is suffering financial distress from our main street businesses to our government in St. Paul. As we continue to adjust to the crisis, lawmakers must be prepared to make the tough choices, sacrificing state spending while protecting our taxpayers and folks who have been impacted by this crisis. Minnesota can preserve its essential services but must be willing to sacrifice what we don’t need. In the meantime, I will continue to work with the governor and across the aisle to forge a path forward that allows Minnesota to safely reopen our economy begin putting the pieces back on track.”

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