Q & A: Minnesota's state budget - Associated Press

Brian Bakst, Associated Press, December 1, 2009

St. Paul, Minn. — Despite billions of dollars in recent cost-cutting, Minnesota's budget keeps springing leaks.

State finance officials will detail on Wednesday how much money trouble lies ahead, by releasing a comprehensive economic forecast. The previous four such outlooks have shown deficits, and state leaders expect the grim pattern to continue.
Here are some questions and answers about the forecast.

Q: Why does this report matter?
A: It's one of two done each year that analyze tax collections and spending patterns for the short and long term. While they mainly offer projections, lawmakers rely on the estimates to set the state budget. In good times, expected surpluses often lead to tax cuts or spending increases for favored programs. In bad times, forecast deficits have led to higher fees, reined-in spending and accounting maneuvers.

 

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