XPost: alt.politics.economics, mn.politics, alt.fib
XPost: alt.fan.rush-limbaugh, sac.politics
https://www.fox9.com/news/blame-game-escalates-minnesotas-budget-forecast- worsens
The latest projected budget by Minnesota’s Department of Minnesota
Management and Budget (MMB) shows a worsening budget problem a few years
down the road.
It says the state should still have a surplus at the end of fiscal year
2027, but the projected balance is now $456 million – $160 million lower
than estimates provided in December. By 2029, that surplus turns into a $6 billion deficit — almost $900 million worse than in December.
The changes are largely driven by inflation, so Democrats blame President Donald Trump. Republicans point out the projected deficit was already $5.1 billion before Trump took office.
ST. PAUL, Minn. (FOX 9) - Minnesota has a couple of years to go before a
big budget mess that’s inevitable without some big changes.
Black and blue budget
Into the red:
Unless the state taxes more or spends less, it’ll be in the black in 2027,
but staring at a growing $6 billion deficit by 2029.
That projected deficit is up almost $900 million since the last forecast
in December, mostly from inflation, so Democrats blame President Donald
Trump.
But Republicans say the DFL trifecta had already run the state down the
road from a huge surplus to a sizable projected deficit.
"Well, the devil will be in the details," said Erin Campbell, Minnesota Management and Budget commissioner.
The details in Minnesota’s budget projections keep getting worse.
Focus on the numbers the state reported for 2027 starting February 2024.
"The Minnesota Management and Budget office is forecasting a $3.7 billion budget surplus by the end of fiscal year 2025 and $2.2 billion after
2027," the state reported.
Ten months later, there was a reported surplus that was expected to shrink significantly because of the rising cost of commitments to spending,
mostly on education and health.
"Gov. Tim Walz says the budget is still balanced with more than $600
million in surplus by the end of 2027," FOX 9 reported in December.
Now the leftover pot of cash at the end of 2027 is down to $456 million
and state economists are projecting a $6 billion deficit by 2029.
Blame game
What they're saying:
"Basically, the only thing that's changed since November is, is Donald
Trump's chaos to the economy," said Walz. "It changes day to day. It
provides the uncertainty that we don't need."
But that projected 2029 deficit was already more than $5.1 billion before
Trump took office.
"Democrats in the state, as you have heard, want to go ahead and blame
anyone else for the damage that has happened to our state budget," said
Speaker of the House Lisa Demuth, (R-Cold Spring). "But this was an irresponsible spending spree."
Could get worse
Elements of uncertainty:
And the problem could get way worse or maybe better soon.
The state’s financial experts say their forecast could dramatically change based on shifting federal policies, disruptions from federal agency
closures, and inflation.
"We've chosen to highlight the uncertainty, because it does feel really significant in this moment," Commissioner Campbell said.
And now the rhetoric takes a backseat and the real work starts.
Legislators should get budget targets based on this forecast, and they
have about two months to put together the budget.
--
November 5, 2024 - Congratulations President Donald Trump. We look
forward to America being great again.
The disease known as Kamala Harris has been effectively treated and
eradicated.
We live in a time where intelligent people are being silenced so that
stupid people won't be offended.
Durham Report: The FBI has an integrity problem. It has none.
Thank you for cleaning up the disaster of the 2008-2017 Obama / Biden
fiasco, President Trump.
Under Barack Obama's leadership, the United States of America became the
The World According To Garp. Obama sold out heterosexuals for Hollywood
queer liberal democrat donors.
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