Pandemic projected to take $4B bite out of Minnesota budget

"A deficit of $2.426 billion is now projected for the current biennium, which is almost a $4 billion change compared to the February forecast."

Posted: May 5, 2020 10:53 AM
Updated: May 5, 2020 5:23 PM

MINNEAPOLIS (AP) — The COVID-19 pandemic is projected to take a nearly $4 billion bite out of Minnesota’s budget, swallowing up its rainy day fund.

Budget officials now projects a $2.4 billion deficit for the current two-year budget. That compares with a projection just nine weeks ago of a $1.5 billion surplus.

The projected deficit is just slightly larger than Minnesota’s budget reserve, which can help cover the hole. But Budget Commissioner Myron Frans cautioned against relying solely on that to close the gap.

Gov. Tim Walz says he’s not ready to rule anything out - including layoffs and furloughs of state employees.

"Minnesota’s budget and economic outlook has significantly worsened since the coronavirus pandemic. A deficit of $2.426 billion is now projected for the current biennium, which is almost a $4 billion change compared to the February forecast. Revenues are expected to be $3.611 billion lower and spending, including appropriations enacted since February, is expected to be $391 million higher. The $2.359 billion budget reserve remains available to mitigate the budgetary impact of the crisis. Given the uncertainty about the path of pandemic, the economic outlook will remain volatile for some time," the state said.

Governor Tim Walz issued the following statement in response to the updated 2020 budget forecast:

“Today’s budget outlook confirms what we suspected: COVID-19 will badly damage Minnesota’s economy.”

“As I said during my State of the State address, there is a long winter ahead. COVID-19 is upending life as we know it—and our economy will not be spared.”

“This will mean shared sacrifice among all of us. Hard decisions will be made.”

“But thanks to smart budgeting, Minnesota is in a much better position than other states to weather the storm. We must not undercut what got us there: Investing in our children. Expanding access to health care. Putting Minnesotans first.”

“These last few weeks have been difficult, and it’s only going to get harder.”

“It is more important than ever that we lead with our values and protect Minnesota’s quality of life.”

“Minnesotans will look out for one another. We will help each other back on our feet. We will get through this winter—together—and we will see spring.”

House Minority Leader Kurt Daudt, R-Crown, issued the following statement regarding the budget update released Tuesday:

"Today’s budget update shows that our state is seeing the same financial struggles that families and businesses are facing. Democrat Governors in New York and Wisconsin have already come forward with billions in budget reductions to react to the COVID crisis, and it's time for Gov. Walz to do the same. Families and businesses cannot bear the burden of this crisis alone: government must share in the sacrifice."

The Minnesota Department of Health on Tuesday reported 617 new confirmed cases, the state’s highest one-day total yet. Hospitalizations hit new highs, with 434 patients hospitalized Tuesday, including 182 in intensive care.

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Minnesota Coronavirus Cases

Data is updated nightly.

Cases: 484594

Reported Deaths: 6551
CountyCasesDeaths
Hennepin1005381584
Ramsey43006800
Dakota36180389
Anoka33231384
Washington22027255
Stearns18714201
St. Louis14769262
Scott13241107
Wright12500115
Olmsted1177288
Sherburne870772
Carver767840
Clay689987
Rice669091
Blue Earth592635
Kandiyohi579074
Crow Wing519281
Chisago497545
Otter Tail481770
Benton445790
Winona417449
Mower403331
Douglas392368
Nobles386647
Goodhue385168
Polk342662
McLeod338849
Beltrami337251
Morrison324147
Lyon312944
Itasca312546
Becker310741
Isanti305154
Carlton300149
Steele299511
Pine282016
Freeborn280123
Nicollet257041
Todd247330
Brown243837
Le Sueur234820
Mille Lacs226847
Cass219324
Waseca208817
Meeker206934
Martin189028
Wabasha18613
Roseau180017
Hubbard160640
Houston157214
Dodge15214
Renville149340
Redwood146727
Fillmore13718
Chippewa136335
Cottonwood134720
Pennington133216
Wadena130620
Faribault122817
Aitkin118733
Sibley117110
Watonwan11718
Rock115714
Kanabec107319
Pipestone101424
Yellow Medicine97617
Murray9438
Jackson93410
Swift88018
Pope8025
Marshall77815
Stevens7418
Lake73618
Clearwater71914
Lac qui Parle68316
Wilkin67110
Koochiching61811
Big Stone5163
Lincoln5062
Grant4918
Unassigned48468
Norman4768
Mahnomen4417
Kittson40821
Red Lake3625
Traverse3035
Lake of the Woods2191
Cook1180

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 361699

Reported Deaths: 5413
CountyCasesDeaths
Polk58040549
Linn20634312
Scott18281207
Black Hawk16227290
Woodbury14937211
Johnson1380573
Dubuque13529194
Dallas1132990
Pottawattamie10765143
Story1019645
Warren553474
Clinton542784
Cerro Gordo533081
Webster518187
Marshall495272
Sioux493769
Buena Vista472936
Des Moines457561
Muscatine450891
Wapello4322108
Jasper416366
Plymouth394477
Lee374952
Marion358369
Jones294454
Henry293137
Carroll285448
Bremer279754
Crawford273635
Boone259130
Washington253747
Benton252454
Mahaska224046
Jackson221238
Dickinson217139
Tama213065
Kossuth208154
Clay193125
Hamilton191842
Delaware189239
Winneshiek188427
Buchanan184529
Fayette184435
Page182619
Hardin180839
Wright179631
Harrison179269
Cedar177323
Clayton168053
Butler166331
Mills162820
Floyd162240
Madison154218
Poweshiek153930
Cherokee153535
Hancock146829
Lyon145541
Allamakee145246
Iowa144323
Grundy139030
Appanoose138947
Jefferson138432
Winnebago137930
Calhoun133411
Cass133351
Mitchell130840
Louisa128441
Union126231
Chickasaw124913
Sac124418
Emmet121340
Shelby120533
Franklin118419
Humboldt117425
Guthrie116228
Palo Alto104921
Montgomery103936
Howard102721
Clarke100220
Unassigned9870
Keokuk97829
Monroe93028
Adair92028
Ida91032
Pocahontas85219
Davis82623
Monona81527
Greene76910
Lucas73421
Osceola70314
Worth6977
Taylor66312
Fremont5869
Decatur5759
Van Buren56218
Ringgold52020
Wayne48721
Audubon4869
Adams3274
Rochester/St. Mary'S
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Albert Lea
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Austin
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Hi: 43° Lo: 13°
Feels Like: 3°
Charles City
Partly Cloudy
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Feels Like: 5°
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