State budget released

A $1.203 billion deficit is being projected for the FY2010-2011 biennium due to an extended weakness in the economy. Minnesota Management and Budget Commissioner Tom Hanson said this morning that the story of the forecast is unemployment is up and wages are dramatically down. Hanson said 70 percent of the $1.203 deficit is a result of a decline in income tax.

For the next biennium, 2012-13, a $5.426 billion deficit is being projected. This reflects many one-time solutions, including the federal stimulus funds that do not continue beyond fiscal year 2011.

You may review the complete forecast, along with the press conference handouts here.