How much money can Minnesota spend next year? That's the question state economists are asking as they budget for everything from road projects to education.
"The state's cash position is very solid," said Assistant Finance Commissioner Kathy Kardell. "We do not face the same cash flow issues that some states like California and Massachusetts are dealing with right now."
But Minnesota has problems of its own, with a potential $4 billion deficit for the current biennium. The reason? As Minnesotans spend less and make less, the state is also making less in sales and income tax collections, its revenue falling far and fast while the US and global economies also tumble.
"This is all very troubling, and we're in really uncharted territory," said State Economist Tom Stinson.
So are the Minnesota Vikings, whose lease at the Metrodome expires in just two years. After 26 seasons in the dome, the team now wants a new stadium, but winning that battle may be harder than a Super Bowl. The team last winter toured nine Minnesota cities to gauge support for the plan, but in April the state senate shot down a request to spend 2 million dollars just to study the idea of a stadium.
Now the team wants lawmakers to back a $616 million project, and a retractable roof at another $200 million. But economists say new costs are not in the budget, bad news for the purple while the state's in the red.
"We will be challenged to pay for the spending we are already doing," said Minnesota Finance Commissioner Tom Hanson. "Any new initiatives or new spending will probably have to be rethought."
The Metropolitan Sports Facilities Commission says it does not rely on a continuing tax subsidy to operate or maintain the metrodome, and is the nation's only public stadium that can say that.
And despite the economy, it is not giving up on the idea of a new building, saying waiting until 2010 to break ground will raise construction costs by $70 million.
(Copyright 2008 by KARE. All Rights Reserved.)
