I want to quickly provide an update of what happened at the capitol this past week. I will cover some important bills that passed in the Senate, breakdown what the Minnesota Management and Budget (MMB) forecast actually means for Minnesotans, and finally give a little bit of news regarding the Governor’s most recent executive order.
Legislative Updates
On Monday, the Senate passed an emergency rural broadband bill that will expand broadband access to students and families that find themselves working and educating from home due to the Covid-19 pandemic. As many students are forced to work from home, we want to ensure they actually have the ability and access to distance learning resources. The bill is broken down into three appropriations: $8 million in grants for students related costs and schools working to connect students to distant learning; $2 million dedicated to award grants for the purchase of telemedicine equipment for COVID-19 related care; and $10 million will go towards the Border to Border Broadband Fund which develops broadband in unserved areas.
MMB Budget Forecast: Breaking the numbers down
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. This is after a projected surplus of 1.5 billion in February of 2020, bringing the difference to almost $4 billion in two months. The updated forecast, which is used to guide consideration of spending bills at the legislature, anticipates dramatically lower revenues as a result of the COVID-19 virus. In accordance with state law, the balance of the state’s budget reserve is $2.359 billion.
This update is saddening, though not surprising, considering that a large number of businesses were shut down by various executive orders from Governor Walz. There has also been increased government spending on emergency legislation, which was to keep our state running during the pandemic. People are not working and consumer spending is low, from a real or perceived lack of security.
I also want to be cautious with a bonding bill this year, because every $100 million in borrowing costs the state $142.72 million in debt service over the next 20 years. Our infrastructure is important, but we must do what we can to get Minnesota back on track. Finally, we are setting up a COVID-19 Economic Recovery Taskforce to bring the best people and resources together to rebuild the Minnesota economy.
Most importantly, we must rebuild our economy by re-opening the state soon. Further shutdown orders will decimate essential government services and the great quality of life Minnesotans are accustomed to. If we re-open safely and quickly, we can mitigate the long-term effects of this peacetime emergency.
Executive Order 20-51 to Open Elective Surgeries
After almost two months of rural and small town hospitals, dentist clinics, and veterinarians suffering due to EO 20-09 which prohibited elective surgeries and other care from occurring, on Tuesday, Governor Walz signed EO 20-51 which will allow these services to resume on May 11th. Although some hospital staff have already been furloughed, we hope this allows Minnesotan healthcare providers to get back to work and Minnesotans receive the care they need.
Finally, this past Sunday was Mother’s Day. I would like to wish all mothers throughout our region a Happy Mother’s Day! We know in the last couple of months many parents have added teaching to their daily duties, and we are thankful for all the care and support you provide. Additionally, have a safe and enjoyable Minnesota Fishing Opener! Good luck fishing and hopefully the weather will cooperate.