Minnesota’s budget outlook is significantly better for this biennium and the next due to an improved U.S. economic outlook that is bolstered by large federal actions that have emerged since November and were not incorporated in earlier projections.  There is no longer an anticipated shortfall for FY 2022-23 and we now project a positive balance of $1.6 billion because of a higher revenue forecast, lower state spending, and an increased surplus for the current fiscal year. Improvements to the economic outlook have not been spread equally as unemployment continues to disproportionately impact lower-wage workers.”

As expected, Governor Walz released his proposed budget for the 2022-2024 biennium on Tuesday, January 26, 2021.  Minnesota enacts budgets for a two-year cycle (a biennium), beginning on July 1 of each odd-numbered year. By law, the Governor must propose a biennial budget in January of odd numbered years.

Monday, the Minnesota Legislature met in the 7th and most likely last Special Session of 2020.  The Session was made necessary when Governor Walz decided to continue the extension of his Emergency Executive Order related to the management of the Coronavirus.  The Governor is required to call the Legislature into session to provide both bodies the opportunity to strip him of his emergency authority.