State budget officials are predicting a two-point-four billion-dollar deficit over the next two fiscal years. State senator Nick Frentz of North Mankato says as bad as the situation is, it could have been worse.

“Not only did we have a triple-A bond rating and a projected surplus of one billion dollars, but we also had two-billion in the state’s reserve account,” said Frentz.

Governor Walz said Tuesday everything needs to be on the table and the state needs to do what it can to help alleviate any local governments’ budget headaches.