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 Jeff Howe (R-Rockville) issued the following statement:

“COVID-19 has had a disastrous effect on this state, and now Minnesotans get to see that because of this pandemic our economy is now crippled, and our state is now facing a substantial budget shortfall. Minnesota’s budget deficit shows that our state cannot afford a prolonged economic shut down without further disastrous results to our economy and the services provided by our government. The loss of economic activity in only a brief period has taken us from strong economic solvency towards a path of upcoming difficult choices.” 

 “The loss of nearly $4 billion of state revenue should serve as a message for continuing Minnesota’s economic lockdown. We need to reopen Minnesota and work with our businesses who know how to operate safely and protect both their employees and customers. We also need to consider the long-term implications of this administration’s daily choices and need to be prepared to make the hard choices that will get Minnesota out of this mess.”

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.