The Latest News from the Capitol: Covid relief, a new budget forecast, and more!
This is the time of year when the capitol starts teeming with activity in preparation for the upcoming legislative session. Even though the capitol is a ghost town these days, the pace remains as furious as any other year. In addition to the normal pre-session business, the urgency of a coronavirus relief package has legislators working long days and nights.
Here is a summary of the latest news.
A new budget forecast came out in early December.
We now have a $636 million surplus at this moment but are facing a $1.28 billion deficit for the next budget, which begins in July.
The news of a small surplus was a surprise, but it is still concerning. Recent state budget growth has been unsustainable, and we will have much bigger problems down the line if we don’t get it in check now.
We need to do a few things:
- First, hold spending in line and comb through every budget area to find savings wherever we can.
- Second, don’t raise taxes. We are currently discussing an emergency coronavirus relief package for businesses and workers; the last thing we should do is turn right around and raise their taxes. Not to mention, it won’t work.
- Third, get our economy churning at the same strong pace it was at before the outbreak. That means letting businesses open up, with health and safety continuing to be the top priority.
Emergency Covid relief bill finished
On December 14 the legislature approved a bipartisan Covid emergency relief bill to help businesses impacted by Gov. Walz’s latest executive order.
Businesses across Minnesota are in dire straits, so the name of the game is speed. Relief is broken down into three tiers, aimed to get money out the door as fast as possible:
- The first tier represents businesses that were directly impacted by the executive order, like restaurants and bowling alleys. They’ll get a check based on how many employees they have, possibly by the end of the year or early January.
- The second tier includes grants that will be available through DEED.
- The third tier is funding that will go to counties, which they will distribute to their local businesses. Counties will have wide latitude, but the deadline for distributing this money is March 15.
Our relief package is targeted at those who need it most. With so many businesses and employees hurting, legislators on both sides of the aisle worked hard to set aside our differences and get this done in short order. It’s a victory for Minnesotans, but no substitute for finding ways to reopen the economy.
The first doses of coronavirus vaccine could be distributed in the next week.
Initially, the priority will go to health care professionals and long-term care residents, and then be phased in as more vaccines become available.
Though it won’t be widely available for months, the fact that we were able to get a safe, reliable vaccine in such a short time frame is a testament to the genius of the scientists, epidemiologists, virologists, and everyone else who worked on it. We also owe a huge thanks to President Trump and Vice President Pence. Without Operation Warp Speed, we would not have made close to this progress.
If you have any questions about these issues or any feedback about what the legislature is working on, please feel free to reach out to me any time at Sen.Julie.Rosen@senate.mn or 651-296-5713. It is an honor to serve you!