Minnesota Could Face Projected $4.7 Billion State Budget Deficit
Dave Bishop | Aug 2, 2020 AT 10:54 am
(MNN) -- Minnesota lawmakers might have to contend with a four-point-seven-billion-dollar deficit when they set the next two-year state budget.
The Walz administration released the update Friday. Officials blame lower revenue and higher projected spending, presumably due to the economic downturn from COVID-19.
They stress these are projections and could change significantly by next year.
House Republican Leader Kurt Daudt says Governor Tim Walz wants hundreds of millions of dollars in new spending that will only make the task of closing the deficit more difficult.
Walz says the state has challenges ahead but "will continue to make smart fiscal decisions and request aid from the federal government to help our state manage this difficult time.”