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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.

Restrictions in place in Minnesota, Iowa | Answers, symptoms and prevention | For complete Coronavirus coverage, click here | Iowa Department of Health info | Minnesota Department of Health info | Daily timeline of cases in Minnesota, Iowa | Sign up for our Coronavirus newsletter | Click here for Iowa unemployment info | Click here for Minnesota unemployment info

Minnesota Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 132122

Reported Deaths: 2381
CountyConfirmedDeaths
Hennepin33719984
Ramsey13909358
Dakota9686137
Anoka8552150
Washington583071
Stearns574343
Scott334834
Olmsted323230
St. Louis291267
Wright243214
Clay228043
Nobles225716
Blue Earth20367
Carver17677
Sherburne166521
Kandiyohi16585
Rice16289
Mower150815
Winona124319
Crow Wing99021
Chisago9812
Lyon9596
Waseca9279
Benton9238
Beltrami8767
Otter Tail8517
Todd7865
Steele7563
Itasca71917
Nicollet71817
Morrison7129
Douglas6723
Freeborn6664
Le Sueur6205
Polk6184
Martin61117
McLeod5884
Watonwan5784
Goodhue57311
Becker5513
Pine5310
Isanti5275
Chippewa4293
Carlton4231
Mille Lacs40115
Dodge3920
Hubbard3792
Wabasha3700
Cass3665
Pipestone34517
Meeker3253
Rock3244
Brown3203
Yellow Medicine2815
Cottonwood2760
Murray2753
Redwood27111
Roseau2590
Fillmore2570
Renville25011
Sibley2493
Faribault2280
Wadena2243
Jackson2081
Kanabec20510
Swift2011
Unassigned20153
Houston1971
Pennington1851
Lincoln1820
Stevens1811
Aitkin1772
Koochiching1674
Pope1550
Big Stone1360
Wilkin1334
Lac qui Parle1323
Lake1180
Norman1140
Mahnomen1102
Marshall1101
Clearwater1050
Grant964
Red Lake772
Traverse550
Lake of the Woods441
Kittson380
Cook130

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 114201

Reported Deaths: 1620
CountyConfirmedDeaths
Polk18758288
Woodbury712294
Johnson580330
Black Hawk551098
Linn5420129
Dubuque510957
Scott444638
Story397318
Dallas342044
Pottawattamie320444
Sioux239616
Buena Vista224512
Marshall199536
Webster182415
Plymouth163527
Wapello150762
Clinton145726
Muscatine142058
Cerro Gordo135425
Des Moines135410
Crawford135214
Warren12147
Carroll111412
Jasper108134
Henry10465
Marion98310
Lee94310
Tama93737
Delaware76212
Dickinson7257
Wright7161
Boone7119
Mahaska67824
Bremer6619
Washington65011
Harrison64611
Jackson5963
Benton5692
Lyon5427
Clay5244
Louisa51715
Winnebago47419
Hardin4697
Hamilton4664
Winneshiek4669
Kossuth4600
Poweshiek45411
Cedar4445
Buchanan4434
Jones4344
Floyd43011
Emmet42317
Clayton4073
Iowa3968
Cherokee3922
Page3890
Sac3894
Mills3871
Guthrie38415
Franklin38018
Cass3783
Fayette3684
Shelby3671
Butler3662
Allamakee3608
Madison3563
Chickasaw3461
Clarke3453
Humboldt3203
Hancock3124
Palo Alto3092
Grundy3035
Calhoun3004
Osceola2721
Mitchell2670
Howard2669
Monroe25811
Monona2411
Jefferson2341
Taylor2312
Union2294
Appanoose2233
Pocahontas2212
Lucas1996
Fremont1971
Ida1882
Greene1840
Van Buren1722
Davis1704
Montgomery1687
Keokuk1601
Adair1551
Decatur1490
Worth1420
Audubon1411
Wayne1173
Ringgold882
Adams790
Unassigned140
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