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 as a result of the coronavirus pandemic. In accordance with state law, the balance of the state’s budget reserve is $2.359 billion. In response, Senator David Senjem (R-Rochester) issued the following statement:

“The economy is Minnesota is experiencing a tremendous amount of volatility right now and that is reflected with this projected budget deficit – an ugly representation of the devastating effects associated with such a massive economic disruption. Until we get people back to work and open our communities up for business again, we will continue to see the state’s deficit tick up.

“While this is only a projection, it also means challenges lie ahead for legislators as we consider a potential bonding bill, supplemental budget requests, and begin work on crafting a balanced state budget. This will likely involve some very difficult choices down the road, but I am optimistic we will tackle those issues with the same spirit of bipartisanship that has guided this legislative session. The coming weeks and months will undoubtedly bring about new challenges, but we will see an economic boom again! My colleagues and I stand ready to work together and confront these challenges on behalf of the people of Minnesota.”

The balance of the state’s budget reserve is $2.359 billion in accordance with state law. The 2020 legislative session must adjourn by May 18.

Senator David Senjem represents Dodge and Olmsted counties in the Minnesota Senate. He serves as chair of the Senate Capital Investment Committee and is a former majority leader and minority leader.