State of Minnesota Economic Forecast – November 2009

Yesterday Minnesota Management & Budget (MMB) released the November 2009 economic forecast for the State of Minnesota which projects a $1.203 billion deficit for the current 2010-2011 biennium due to an extended weakness in the economy. For the next biennium, 2012-13, a $5.426 billion deficit is being projected without adjustment for inflation reflecting the use of many one-time solutions, including the federal stimulus funds that do not continue beyond fiscal year 2011. Click the headline for details and to find out when the next town hall meetings will be held.

Legislative Audit Commission Reviews Governor’s Unallotment Plan

Further cuts to state government and local government aid were made by Gov. Tim Pawlenty mid-June through the unallotment process after the Legislature and governor failed to reach agreement during the legislative session ended May 18. Many of those cuts took effect July 1 for the start of fiscal year 2010.