The $1.2 Billion Question: How do we solve the state's projected budget deficit - Bring Me The News MN
January 06, 2010
Dan Haugen and Whitney Stewart, Bring Me The News, December 2, 2009
The state's budget office today released its annual fall economic forecast, which predicts the state is on pace for a $1.2 billion deficit at the end of the current two-year budget cycle, which ends June 30, 2011. About 70 percent of the shortfall is due to lower than expected income tax revenues, which plummeted as employers in the state laid off workers, cut hours and reduced pay to their employees.
Now comes the question of what to do about the projected deficit. Gov. Tim Pawlenty said the situation is urgent enough that he may use unallotment this month to cut local governments aid, while others say the numbers could easily change before the budget cycle ends and that we have time to wait and see. The following is a summary of some of the solutions being proposed by politicians and others. We'll be updating throughout the day:
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