Pawlenty to release updated budget - KTTC Rochester, Austin, Mason City News, Weather and Sports

Pawlenty to release updated budget

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ST. PAUL, Minn. (AP) -- Gov. Tim Pawlenty is due to release his revised budget at 2:30 p.m.

The Republican governor issued his original plan in January, but he has to update it in line with a new economic forecast that was released earlier this month.

While Pawlenty insists he won't approve a state tax increase to close the state's $4.6 billion deficit, his Revenue Department projects that property taxes will increase $626 million over the next three years.

Revenue Commissioner Ward Einess says the forecast assumes that local governments will raise taxes to offset Pawlenty's proposed cuts in aid.

Some DFL leaders say that since there will be aid cuts, they should remove the 3.9 percent cap on property tax increases that the state imposed last year. Pawlenty opposes lifting the cap.

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