Minnesota State Wire

Minnesota will have $4 billion less in its budget as a result of the COVID-19 pandemic and Senate Majority Leader Paul Gazelka (R-East Gull Lake) said salary freezes, no new spending and renegotiating state employee contracts are responsible solutions.

The state's budget has worsened since the pandemic and now shows a deficit of $2.4 billion, which is a $4 billion change since its February forecast, according to the May 2020 interim budget project. Revenues are also expected to be $3.5 billion lower and spending is now expected to be $391 million higher. 

“The state is going to have less money next year. About $4 billion less,” Gazelka said in a press statement from the Minnesota Senate Republican Caucus. “That falls on the shoulders of the legislature to manage. We are doing everything we can to limit the negative financial impact of COVID, but it’s clear a holding pattern is not enough.”

The hard decisions for the legislature have already begun, including a salary freeze and a potential hiring freeze this month.

“Today the Senate Rules Committee implemented a salary freeze for our own employees. We will likely impose a hiring freeze this month as well,” Gazelka said.

In addition, lawmakers should renegotiate state workers’ contracts to limit layoffs in the 2021 budget.

“The next most responsible move for state government is to renegotiate the second year of state employee contracts so thousands of state workers won’t face layoffs from budget shortfalls in the 2021 budget,” Gazelka said.

The senator also said any new spending increases that won’t be reimbursed by federal coronavirus funds must not be approved.

“We need to say, 'no' to any new spending increases that won’t be reimbursed by the federal COVID relief funds or help us reopen the economy,” Gazelka said. “And we must exercise caution when it comes to the bonding bill because every $100 million in borrowing costs the state $142.72 million in debt service over the next 20 years.”

The economy also needs to open to fund essential government services and the senator said he has requested “top thinkers” to work on this plan as part of the state’s COVID-19 Economic Recovery Task Force.

Gazelka indicated that small business owners and laid-off workers should know that the state government is also making sacrifices.

“At the end of the day, we need to be able to look into the eyes of the small business owner and the laid-off worker and tell them state government is making sacrifices too. Empathy is not enough. Actions speak louder than words,” Gazelka said.