May 6, 2020
MINNEAPOLIS (AP) – The COVID-19 pandemic is projected áto 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.