Dec 5 Minnesota faces a nearly $1.1 billion
deficit in its upcoming two-year budget, mainly due to
nonrecurring measures that were used to balance the current
budget, according to a forecast released on Wednesday.
The state issued tobacco bonds and delayed state aid
payments to school districts to help eliminate a $5 billion hole
in its current budget. While the fiscal 2012-2013 budget is
projected to end the biennium in the black, the ending balance
will be used to reduce the amount of shifted school payments to
$1.1 billion from $2.4 billion, the forecast released by the
Minnesota Department of Management and Budget said.
Governor Mark Dayton said the state was done with
"We're going to make tough decisions, there will be
unpopular decisions, there will be hard decisions, but that's
what we're going to do," he said in a statement.
For the fiscal 2014-2015 biennium that begins July 1,
Minnesota is projecting revenue at nearly $35.8 billion, an $849
million increase over the current biennium.
In the absence of a solution to the U.S. "fiscal cliff",
which would lead to higher taxes and big federal spending cuts
next year, Minnesota's revenue for the upcoming biennium could
be about $1.75 billion lower than projected, according to the