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 Justin Eichorn (R-Grand Rapids) issued the following statement:

“This week, we learned the news that Minnesota is facing a substantial budget deficit in the upcoming biennium. This information is not surprising as the COVID-19 pandemic has wreaked havoc on our state’s economy and flattened revenues that the state had anticipated to collect. As we look to the future and rebuilding our state, our state government must evaluate its operations and figure out how to come back in line. Rather than saddle Minnesotans with higher tax burdens, we must be smart and consider reductions in overall spending. This does not mean removing essential services by prioritizing cutting evident waste and fraud. There will be difficult choices over the next few months, but if we work together, we can get our economy and our state 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.