Budget Deficit Not as Bad as Anticipated
[MMA News Now, Feb. 28, 2013] Although the state still faces a budget deficit, the number is not as imposing as first thought, according to the state of Minnesota’s budget forecast released Feb. 28.
For the 2014-2015 biennium, which the legislature is addressing this session, the projected deficit is $627 million, which is $463 million better than predicted in the November budget forecast.
Fiscal year 2012-13 is projected to have a positive balance of $295 million but due to existing state law, all but $5 million of that will go toward K-12 budgets, which the state borrowed against.
With the budget announcement, legislators will begin in earnest their work to craft a biennial budget.
“This is good news,” said Dave Renner, the MMA’s director of state and federal legislation. “We still have to get a better idea of the details but it should take some of the pressure off of legislators to not make cuts in health care programs as they have in the past.”