$2.4 Billion Budget Deficit Projected in MN Due to COVID-19 Pandemic

The COVID-19 pandemic is projected to take a nearly $4 billion bite out of Minnesota’s budget.

Budget officials now project 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. Gov. Tim Walz says he’s not ready to rule anything out when dealing with the deficit, including layoffs and furloughs of state employees.

The Minnesota Department of Health on Tuesday reported 617 new confirmed cases, the state’s highest one-day total yet. That’s up 46 from Monday to raise the state’s total to 7,851. Minnesota’s death toll rose by 27 to 455. 24 of the 27 deaths were people in long-term care facilities, and 81% of those who have died in the state have been people in long-term care facilities. And hospitalizations hit new highs, with 434 patients hospitalized as of Tuesday, including 182 in intensive care.

Walz also used Tuesday to ease worries on patients and the financial burden on health care providers by allowing doctors, dentists, and veterinarians to resume elective surgeries and other procedures beginning May 11th. The temporary ban, which he ordered in Mid-March to preserve supplies of personal protective equipment, had support from the state’s hospitals but led several health care systems across the state to furlough workers.