COUNTDOWN: THE YEAR’S MAJOR WINONA NEWS
No. 5: Public finance crisis
The economic slowdown caused by pandemic shutdowns and job losses put tax-reliant state programs in a bind. Even an unexpected revenue upturn calculated in December wasn’t sufficient to meet all needs. The Legislature did, however, send money to counties in December. Winona County received $1 million, and the county was passed on the money in local grants. The Legislature also extended unemployment benefits 13 weeks, earmarked $88 million for on-site food and beverage businesses that had lost 30% decline of their trade, and sent $14 million is to convention and entertainment venues. The state hoped for federal reimbursement, but there was risk: Would Congress come to the rescue with it unlimited borrowing power – a power that state and local governments don’t have.