Minnesota facing projected $188 million deficit

Minnesota’s political leaders say that a $188 million budget deficit over the next 18 months is cause for concern but not panic.

State budget officials attributed the shortfall, identified in a new state economic forecast released Tuesday, to slower-than-expected economic growth along with tax and spending decisions made by the Legislature earlier this year.

The forecast found that Minnesota has continued to add jobs and hold its low unemployment rate over the past year. But growth has nevertheless been slower than expected here and across the country, and budget experts are uncertain about how new federal policies on taxes, trade and immigration could impact the state.

Meanwhile, DFL Gov. Mark Dayton and Republican majorities in the Legislature used much of the state’s $1.65 billion surplus projected earlier this year to cut taxes, prop up the state’s individual insurance market and increase spending to a range of state programs — leaving little wiggle room if the economy slows down after years of growth.

Read more: http://www.startribune.com/state-budget-projections-to-be-released-this-morning/462065803/