Politics & Government
Minnesota To Lose Nearly $4 Billion After COVID-19: Projection
Before the health and financial crisis caused by the new coronavirus, Minnesota had a budget surplus. A large deficit is now projected.
TWIN CITIES, MN — The crisis caused by the new coronavirus has completely erased the state of Minnesota's budget surplus. Minnesota Management and Budget Tuesday announced that a deficit of $2.426 billion is now projected for the state for fiscal years 2020 and 2021.
The new budget projection is a $4 billion decrease compared to the February forecast.
Minnesota’s budget and economic outlook has significantly worsened since COVID-19 began spreading in the United States:
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- State revenues are expected to be $3.611 billion lower
- State spending is expected to be $391 million higher
"Given the uncertainty about the path of pandemic, the economic outlook will remain volatile for some time," state budget officials stated Tuesday.
Minnesota's $2.359 billion budget reserve can be used to mitigate the impact of the financial crisis.
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