State Budget Forecast Trims 1.2 Billion Dollars From Deficit

State officials gave their forecast on the Minnesota budget today, and it looks promising.

The assessment by the Minnesota Management and Budget department shows that federal cuts in payroll taxes and a delay in higher capital gains taxes has taken the projected budget deficit from 6.2 billion dollars to 5 billion for the upcoming 2012-2013 fiscal biennium.

Republican representative Steve Gottwalt of St. Cloud says the extra funds will be helpful in getting the state back on track.

Governor Mark Dayton said earlier he might revisit his proposals to cut spending on nursing homes and home health care programs if the
forecast improved.