Governor Pawlenty on Budget Forecast
Federal Stimulus dollars are helping Minnesota’s deficit according to the most recent state budget forecast released,Tuesday. Minnesota Management & Budget says the State of Minnesota faces a $4.6 billion shortfall in Fiscal Year 2010-11. This is less than previous projections which indicated the state could see as high as a $7 billion dollar deficit.
The $4.6 billion is over $270 million less than the previous forecast in November. One-point-two billion dollars is offset from money received from the federal stimulus package. The stimulus funds also helped turned a deficit to a positive balance for the 2008-2009 biennium. Minnesota is now expected to end the biennium with a balance of $236 million.
The stimulus funds may help in the short term, but financial experts expect tough times ahead. The budget forecast predicts revenues for 2012-2013 to be $5.13 billion less than projected expenditures.
Saint Paul – The following is a statement from Governor Tim Pawlenty regarding Minnesota Management & Budget’s updated economic forecast.
“Minnesota is not immune from the economic crisis. This is a challenging forecast that reflects a very challenging economy.
“As we balance the budget, state government needs to reflect the realities that families and businesses are facing. We need to focus on creating an environment that will grow jobs, tighten government’s belt by reducing spending, and avoid making the situation worse by raising taxes.”