MN state budget forecast clouded by debt limit crisis

12:28 PM, Jan 14, 2013   |    comments
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ST. PAUL, Minn. - Minnesota lawmakers are being told to expect a new state economic forecast on Feb. 28, but also being warned that more uncertainty from Washington will cloud the picture.

State finance officials on Monday revealed the date of the much-anticipated forecast. They also told the House Ways and Means Committee that a debate over whether to boost the nation's debt limit probably won't be resolved when the state report is prepared.

The document matters because it provides the fiscal target lawmakers must hit with their two-year budget. For now, the state is faced with a projected $1.1 billion deficit.

State economist Tom Stinson says the assumption is Congress will increase the nation's borrowing limit. If that doesn't happen, many economists are predicting a credit rating downgrade and other fiscal fallout.

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