Latest projection shows MN now facing $2.4 billion deficit amid COVID-19

The latest state budget projection shows a $2.4 billion deficit 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. Officials say the $2.4 billion budget reserve remains available to mitigate the budgetary impact of the crisis, but warn that “given the uncertainty about the path of the pandemic, the economic outlook will remain volatile for some time.” More details are expected at 2 pm from Governor Tim Walz and Minnesota Management and Budget Commissioner Myron Frans.