East Twin Cities

Minnesota is facing a $4.7 billion revenue shortfall for fiscal years 2022 and 2023, which comes after the COVID-19 pandemic, Minnesota Management and Budget (MMB) Commissioner Myron Frans said. 

“Today’s revenue update gives us more information about the budget problems we need to solve during this current biennium and the next,” Frans said in a statement, the Center Square reported. “The planning estimates for 2022-23 will help decision-makers begin the budget planning process as we continue to respond to the pandemic. In keeping with our sound fiscal management principles, the August bonds sales will save taxpayers’ dollars with our ability to access lower interest rates.”

Not only will future fiscal years have shortfalls, but a $2.4 billion deficit was confirmed for this year. This puts the budget at approximately $58 billion less than what was originally projected. 

Of the state's $2.4 billion rainy day fund, Gov. Tim Walz wants $250 million to be used on schools for their fall plans, the Center Square reported. 

Before December's forecast, Walz hopes more federal aid will be granted to the state. 

“Minnesota is not alone. States across the country are facing large budget gaps during this global pandemic,” Walz said in a statement, the Center Square reported. “We have challenges ahead, but we will continue to make smart fiscal decisions and request aid from the federal government to help our state manage this difficult time.”