SAINT PAUL, Minn. – Today, Minnesota Management and Budget (MMB) announced the November Economic Forecast, projecting a $641 million surplus for the current budget cycle, while a deficit of $1.273 billion is projected for the 2022-2023 biennium beginning July 1. The economic projections show that Minnesota can afford to provide immediate economic aid to Minnesotans and small businesses hit hard by the pandemic.
The forecast notes the continuing economic challenges people are facing as a result of the COVID-19 pandemic, including 184,000 fewer jobs than in February. Lower wage workers have experienced a disproportionate number of job losses and longer durations of unemployment.
“Today’s forecast confirms what we suspected: that job losses in the pandemic have fallen on the people with the lowest incomes,” said Rep. Tina Liebling (DFL – Rochester). “The pandemic has intensified Minnesota’s inequities. Minnesotans in all parts of the state need legislators and the governor to come together to deliver relief to help them survive this crisis.”
DFL lawmakers are working with Governor Walz and Republican legislators to reach agreement on a COVID-19 relief package. On November 24, House DFLers and Governor Walz announced a plan to help Minnesotans whose livelihoods and family businesses are most likely to be harmed by the pandemic.
The plan includes direct aid to small businesses, an eviction moratorium, a 13-week unemployment extension, and emergency $500 payments to struggling families. It also helps Minnesotans put food on the table with grants to restaurants to provide food for healthcare workers, homeless shelters, and long-term care facilities.
The House Ways and Means Committee, of which Rep. Liebling is a member, will discuss the economic forecast next Monday at 9:30 a.m.