SAINT PAUL, MINNESOTA — Today, Minnesota Management and Budget released an updated budget projection showing a projected $2.426 billion deficit in the current biennium. Minnesota currently has $350 million in the state’s cash flow account and $2.359 billion in the budget reserves. House Speaker Melissa Hortman and Ryan Winkler released the following statements:
“While we expected the state’s financial picture to worsen, I am relieved that the size of the projected deficit was not larger,” said Speaker Hortman. “Thanks to prudent financial management of the state’s resources by the executive and legislative branches over the past decade, Minnesota has enough resources in the budget reserve and the cash flow accounts to weather the downturn. I’m pleased Minnesota has received $1.87 billion in federal aid, which allows us to take measures to provide economic security to Minnesotans to help them get through the COVID-19 downturn. Investments are needed to make Minnesotans secure in their housing, help small businesses, facilitate distance learning and telemedicine, and to ensure we have the workforce we need to provide care for the elderly and people with disabilities. The federal assistance allows us to make these needed investments, while our state’s savings will cover our expected dip in revenue.”
“Minnesota has the resources we need to address this crisis; we just need the will to act,” said Majority Leader Winkler. “We must stay the course to reduce the impact of COVID-19, save lives, and help Minnesotans get through the storm. Minnesotans need investments in the things that will help them make it through this crisis and thrive after it, including quality health care, economic security, a good education, and safe and healthy communities.”