Minnesota State Wire

Gov. Tim Walz implements a 10% pay cut to him and his cabinet and receives $1.09 billion of an estimated $2.187 billion from the Coronavirus Relief Fund through the federal CARES Act.

“This is an important first step from the federal government as Minnesota responds to COVID-19 in a fiscally responsible manner,” Minnesota Management and Budget (MMB) Commissioner Myron Frans said in a statement, according to The Center Square. 

Although some of the funding will fund the local government, the plan is to offset the harsh economic hit COVID-19 is having on the economy. The pandemic is suggested to create an estimated $2 billion drop in the state's tax revenue through 2021. 

“The state is providing critical funding to hospitals, public health departments and first responders as we work together to keep Minnesotans safe amid the COVID-19 pandemic,” Walz said in a statement, according to The Center Square. “This critical federal funding will help support Minnesota’s state and local governments as we continue our efforts to combat the spread of the virus in Minnesota.”

By Walz implementing the 10% pay cut and his freeze on hiring they will be saving the state an estimated $300,000 as well.