The office of Minnesota Management and Budget (MMB) on Tuesday released its annual November economic forecast. The report, which details the state’s budget picture, projects a surplus of $641 million for the current 2020-21 budget cycle, and a $1.27 billion deficit for years 2022 and 2023. The forecast represents a dramatic improvement from the $4.7 billion deficit projected in May. 

Senator Scott Newman (R-Hutchinson) issued the following statement:

“It’s good news that our budget situation has improved from where we thought it would be, but we have to remain focused. The truth is we are still far worse off than we could have been had the economic side of this outbreak been managed more effectively. Small businesses and their employees — especially in the hospitality industry — get hammered over and over and over while the big box stores and the big retailers have been ok. We have no business celebrating a slightly improved economic picture when so many of our neighbors are still barely surviving because of the governor’s choices. 

“Tough times are just around the corner. If this forecast holds, next session we will have a significant budget deficit. I will not support raising one cent of taxes on workers and businesses; we’re already asking them to sacrifice more than they are able. Government must look in the mirror and tighten its belt to close the budget gap, while doing everything we can to get the economy firing on all cylinders again.”