Today, Minnesota Management and Budget officials released an official state budget forecast. State Representative Andrew Falk (DFL-Murdock) issued the following news statement:
“Today’s budget forecast reveals a $1.1 billion shortfall for 2014-15. A short-term balance exists; however, all of it, as required by law, must go to repay a portion of what was borrowed from K-12 public schools last session. While this is positive news, the state still owes $1.1 billion to schools and $900 million in inflation is not factored into the shortfall. In reality, a deficit of over $3 billion looms.
The forecast confirms that using shifts and gimmicks to balance the 2011 budget was ill-advised and worsened the state’s long-term budget problems. Looking ahead, we must deal directly with the state’s continuous deficits and take a balanced and fair approach to fixing the structural imbalance. We must resolve this constant fiscal crisis or we will continue to shortchange Minnesota families and school kids.”
The Office of Management and Budget warned that if the fiscal crisis in Washington is not resolved, Minnesota’s economy will be hit hard with the state’s unemployment figure estimated to rise to 7.1%.
A February forecast will used by the Legislature to build the 2014-15 state budget.