The office of Minnesota Management and Budget (MMB) today released the findings of their May economic forecast, a special updated report commissioned to gain a clearer understanding of Minnesota’s budget health as the state manages the coronavirus pandemic. In February, the state projected a surplus of $1.513 billion for 2020-21 budget cycle. The coronavirus and its economic fallout have erased the surplus, and the state is now facing a projected deficit of $2.43 billion. The $2.36 billion budget reserve remains available to mitigate the budgetary impact of the crisis.
Senate Finance Committee Chairwoman Julie Rosen (R-Vernon Center) released the following statement:
“Thankfully, our smart budgeting over the last several years has put the state in a good position to weather the economic side of this crisis in the short term, but not if we continue our current approach. We have to take the coronavirus seriously, but we cannot ignore the economic devastation. The House should pass the Senate’s Tax Relief and Economic Recovery package to help farmers, businesses, and workers get through this, and we should get businesses back up and running – but with safety and health as our top priority.”