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Gunther: Restrictions too tight

FAIRMONT — Call it a little shift of $4 billion.

That’s the situation faced by the state of Minnesota, which has seen a projected $1.5 billion state budget surplus evaporate amid the COVID-19 pandemic. In fact, things have gotten so bad that the state is now projecting a $2.5 billion budget deficit.

The reversal of fortune stems from the sudden dropoff in revenue, as businesses have closed their doors and their workers have been furloughed. Tax payments to the state have plummeted.

Minnesota does have a $2.36 billion rainy day fund available to mitigate the problem, but it is a one-time solution.

“With Governor Walz’s continued efforts to force people to stay at home and keep far too many businesses closed, we have seen a negative economic change totaling nearly $4 billion,” argues state Rep. Bob Gunther, R-Fairmont.

Gunther says he is getting an earful from a growing number of constituents that Minnesota needs to re-open for business, and soon.

“I’m hearing from people who are able to attend church just across the Iowa border but can’t think about it here,” Gunther said. “People want hair salons and barber shops open, and they want to make routine dental appointments. The reality is that Minnesota cannot continue to keep its doors closed for much longer, as I hear 50 percent of the restaurants in our area will not make if they can’t open before July.”

He said the latest Minnesota unemployment claims number stands at 613,216, which he says suggests an unemployment rate higher than 25 percent.

State Sen. Julie Rosen, R-Vernon Center, has not gone as far as Gunther in criticizing the state’s response to the pandemic. But she does have concerns.

“Thankfully, our smart budgeting over the last several years has put the state in a good position to weather the economic side of this crisis in the short term, but not if we continue our current approach,” she said. “We have to take the coronavirus seriously, but we cannot ignore the economic devastation. The House should pass the Senate’s Tax Relief and Economic Recovery package to help farmers, businesses and workers get through this, and we should get businesses back up and running — but with safety and health as our top priority.”

Walz has extended his stay-at-home order until May 18, and has made some changes to allow some businesses to do more, something that in turn brings some workers back to their jobs. But the state is a long way from where it was before the virus prompted the lockdown, and it is not clear how many more weeks the governor will extend the quarantine.

Given the state budget news, Walz in a press release acknowledged tough times, but also tried to encourage Minnesotans to look beyond the current crisis.

“Today’s budget outlook confirms what we suspected: COVID-19 will badly damage Minnesota’s economy,” he said.

“As I said during my State of the State address, there is a long winter ahead. COVID-19 is upending life as we know it, and our economy will not be spared.

“This will mean shared sacrifice among all of us. Hard decisions will be made.

“But thanks to smart budgeting, Minnesota is in a much better position than other states to weather the storm. We must not undercut what got us there: Investing in our children. Expanding access to health care. Putting Minnesotans first.

“These last few weeks have been difficult, and it’s only going to get harder.

“It is more important than ever that we lead with our values and protect Minnesota’s quality of life.

“Minnesotans will look out for one another. We will help each other back on our feet. We will get through this winter together, and we will see spring.”

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