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Politics and Government News
The Associated Press

Walz names new budget chief with state facing $4.7B deficit

Jim Schowalter, who is appointed as MMB commissioner
Jim Schowalter, who served as commissioner of Minnesota Department of Management and Budget under Gov. Mark Dayton and state budget director under Gov. Tim Pawlenty speaks to reporters in St. Paul on Wednesday. Gov. Tim Walz appointed Schowalter to serve again as MMB commissioner.
Matt Sepic | MPR News

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Updated: 7:41 p.m.

Gov. Tim Walz named Jim Schowalter as his new commissioner of management and budget Wednesday to replace Myron Frans, who left his administration for a senior post at the University of Minnesota.

Schowalter is returning to an agency he led in Gov. Mark Dayton's administration. He also served as budget director under Gov. Tim Pawlenty. Frans will become senior vice president of finance and operations at the university.

The governor's office pointed out that Schowalter helped the Dayton administration resolve a $6.2 billion budget deficit that led to a state government shutdown. That experience will come in handy with Minnesota facing a projected $4.7 billion shortfall for its 2022-23 budget due to the coronavirus pandemic, which is expected to wipe out the reserve fund in the current budget.

Walz said in a statement that Schowalter will bring “extensive experience and a proven track record of effective governance” at a critical time for the state. And he credited Frans' leadership with putting Minnesota in a stronger position to weather the fiscal consequences of the pandemic.

Schowalter said he's ready to step in.

"We're going to develop a budget that addresses the current situation and delivers the critical services that Minnesotans depend upon," he said.

House Speaker Melissa Hortman told reporters she adores Frans and that they long had a strong working relationship, but she also praised Schowalter, calling him “another total powerhouse.”

MPR News reporter Matt Sepic contributed to this story.