University of Minnesota Retiree Association

Myron FransCommissioner

May 19, 2020

Dual Crisis—Health and Economic

•16,372 confirmed cases of COVID-19 in Minnesota and 731 deaths

•678,331 Minnesotan workers have filed for unemployment benefits since March 16

•Projected 2020 GDP -7.4% (May) from +2.1% (February)

•$2.426 billion projected deficit (before use of budget reserve)

2

COVID-19 Response Milestones

3

Critical Care Beds

4

U.S. Economic Outlook

Source: U.S. Bureau of Economic Analysis (BEA), IHS Markit (IHS)

90

92

94

96

98

100

102

104

106

108

110

2016 2017 2018 2019 2020 2021 2022 2023

FEB 2020APR 2020

Real Gross Domestic ProductIndexed (due to revision), 2Q 2019 = 100.0

Deficit Projected for Current Biennium

6

Budgetary Balance-February: $1.513 Billion

• Projected Revenue: $3.611 Billion

• Estimated Spending: $391 Million

• Projected Reserve: $63 Million*____________________________________________Updated Budgetary Deficit: ($2.426 Billion)

*Changes to Stadium Reserve

Budget Reserve Available to Mitigate Impact

7

$2.359 Billion

Funding Resources to Combat COVID-19

Federal

Coronavirus Relief Fund – $2.187B

Program-Specific Streams – over $1B

FEMA Funds (match required)

Direct Payments and Loans

StateCOVID MN Fund – $200M

Additional Targeted State Appropriations – $354M

PrivateMN Disaster Recovery Fund – $11M

Other Efforts & Donations

State Agencies

Local Government

Private/Non-Profit Service Delivery

Organizations

Individual Residents & Businesses

Balancing Our Response

9

$2.359 Billion