News

Minnesota economic forecast likely to bring bad news

Photo:

Dec 1, 2011 at 8:02 am

ST. PAUL, Minn. (AP) - Minnesota lawmakers are expecting the worst as the state budget office prepares to release its economic forecast.

The figure is released Thursday morning at a Capitol press conference, and there are widespread expectations it will show more red ink in the state general fund.

That could mean another showdown between Democratic Gov. Mark Dayton and Republican legislative majorities, whose dispute over how to erase a $5 billion projected deficit earlier this year dragged the legislative session into overtime and led to a 20-day state government shutdown.

In that case, Republicans refused Dayton's demand for income tax hikes on top earners while he wouldn't accept their push to cut spending more deeply. In the end the two sides agreed on a mix of cuts, borrowing and delays to school aid payments.