February 26, 2021

February budget forecast, HEAPR funding, Capital Request, and Support the U Day

February Budget Forecast

Today, Minnesota Management and Budget (MMB) released the state’s February forecast, which projects a $1.6 billion state budget surplus for the FY22-23 biennium (July 1, 2021 - June 30, 2023). This is an improvement from the November forecast, which projected a $1.272 billion deficit. 

According to MMB, “Minnesota’s budget outlook is significantly better for this biennium and for 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 projected 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.”

The February forecast will help guide the legislature in crafting a new two-year state budget. The 2021 regular legislative session must adjourn by May 17 and the new budget must be passed by June 30. 

Governor Walz recommends HEAPR funding 

On Monday, February 22, Governor Tim Walz unveiled his 2021 bonding recommendations alongside President Gabel at the Health Sciences Education Center on the Twin Cities campus. The proposal includes $56.9 million in Higher Education Asset Preservation and Replacement
(HEAPR) funding. The event began with a tour of the facility, which was funded by the 2017 bonding bill.
Governor Tim Walz at U of M Health Sciences Education Center
In the photo above, Dr. Lou Clark, Executive Director of M Simulation, shows Governor Walz HSEC's new training facilities.

In her welcome to the governor, President Gabel stated, “The Governor’s recommended investment in HEAPR will help address a massive project renewal backlog across our University system. Of the 30 million square feet of space we maintain, nearly 8 million square feet of this is in poor or critical condition. Our backlog has grown by $750 million over the past 10 years. One-half of our buildings are 50 years old, or older. It is a growing challenge for us, and a challenge we cannot address alone. We rely on the state as our most important partner in this effort.”

Learn more about HEAPR funding.

President Gabel presents capital request to House Capital Investment

On Thursday, February 18, President Gabel presented an overview of the University’s 2021 capital request to the House Capital Investment Committee. The president was joined by Dean Wendy Reed from UMD’s Swenson College of Science and Engineering and Elise Touissant, an undergraduate chemistry student from the Twin Cities campus. Watch the legislative hearing. 

First deadline is March 12

The first committee deadline, for committees to act favorably on bills in the chamber of origin, is Friday, March 12. This leaves just two weeks for the House and Senate committees to act on legislation which means things will move quickly over the next few weeks.

Support the U Day

Please mark your calendars for the University of Minnesota’s first virtual Support the U Day event on March 4, 2021. Support the U Day is an opportunity for students, faculty, staff, alumni, and others around Minnesota to engage with their elected state officials and advance the University’s state legislative request. For more information, join UMN Advocates and invite your friends, family, and others to do the same.