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 response, Senator Jerry Relph (R-St. Cloud) issued the following statement:
“It is disheartening to see our economy take such a swift downward as a result of the economic disruption facing our state and nation. If we do not get Minnesotans back to work again, that downward trend will continue. I know there are many challenges that lie ahead. As the legislature considers a potential bonding bill, supplemental budget requests, and begins work on crafting a balanced state budget, it has never been more important that we are responsible stewards of taxpayer dollars. We must choose capital investments that will have an immediate positive effect on the economy. We must also be frugal in our discretionary spending.
“Thanks to the sacrifices of Minnesotans across the state, we have been successful in our efforts to ‘flatten the curve’ and give health care providers the opportunity to prepare for the increase in cases that are coming. Governor Walz’s decision to open up elective surgeries is also an important step forward as it prevents the possible additional deaths from illnesses unrelated to COVID-19. My colleagues and I stand ready to work together to confront these challenges.
“The balance of the state’s budget reserve is $2.359 billion, though we also must be careful not to deplete that reserve too quickly. The downturn in the economy brought about by COVID-19 will not end this year and we must prepare for the future reductions in revenues that are likely.”
The 2020 legislative session must adjourn by May 18.
Senator Jerry Relph represents St. Cloud, Waite Park, and St. Augusta in the Minnesota Senate. He serves as vice chair of the Senate Family Care and Aging Committee.