The impasse over the fiscal cliff in Washington is casting enormous uncertainty over the economic forecast in Minnesota. And that will complicate Gov. Mark Dayton's task of assembling a two-year budget proposal.
Minnesota is projecting an $876 million surplus for the rest of its two-year budget, easing fears of a bruising new budget fight just months after partisan deadlock over how to resolve a major deficit led to a 20-day state government shutdown.
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.
Monday will be a big day at the State Capitol. The latest budget forecast will be released. The last budget forecast released in November projected a $6.2 billion deficit in the next two-year budget cycle, which starts on July 1st. However, that same forecast had our current budget running at a s…
First the good news: Minnesota tax collections exceeded expectations by $28 million the last two months. Now the bad: That's a drop in the bucket put against a forecast budget shortfall exceeding $6 billion.