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 Dan Hall (R-Burnsville) issued the following statement:

“COVID-19 has impacted every part of Minnesota recently projected budget deficit shows how our state is now anticipating similar financial difficulties that we have seen Minnesota families and businesses already face. As a result of the pandemic and economic shutdown, many of Minnesota’s businesses are closed, and employees have been laid off. As a result, projected revenues are down with no automatic shift in state spending. What was anticipated to be another surplus year now is trending towards one of the largest deficits that we face, which will force our state to make upcoming difficult choices. As we push through this crisis, I am committed to working across the aisle to deliver bipartisan solutions that bring Minnesota safely back online. Together through smart choice by our government and support of our workers and businesses, we can put Minnesota’s economy 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.