Minn. economic forecast kicks off budget season - KTTC Rochester, Austin, Mason City News, Weather and Sports

Minn. economic forecast kicks off budget season

Posted:

ST. PAUL, Minn. (AP) -- Minnesota's budget picture sharpens Wednesday with a new economic forecast, but there's a big caveat.

The forecast from state finance officials may be outdated by the end of the month, depending on what happens in Washington.

Federal negotiations over a long-term deficit fix will determine whether across-the-board tax increases and automatic spending cuts kick in at the start of 2013.

Failure to reach a deal would send the nation over the so-called fiscal cliff and could prompt a recession.

Gov. Mark Dayton and lawmakers use the forecast as the basis for the next two-year state budget. The last forecast anticipated a $1.1 billion gap starting in mid-2013.

The Democratic governor faces a Jan. 22 deadline to propose a budget to the Legislature. Democrats will take over both chambers Jan. 8.

Powered by WorldNow
All content © Copyright 2001 - 2014 WorldNow and KTTC, a Quincy station.
All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service and Mobile Privacy Policy & Terms of Service.

Persons with disabilities who need assistance with issues relating to the content of this station's public inspection file should contact Administrative Assistant Jodi Neyens at (507) 280-5104. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, at 888-835-5322 (TTY) or at fccinfo@fcc.gov.