ST. PAUL – Minnesota’s latest budget forecast showed the deficit dipping from $6.2 billion dollars to $5 billion dollars.
But DFL State Representative Terry Morrow cautions how accurate the forecast really is.
“This forecast happened was prepared before the tensions in the Middle East really flared up,” according to Morrow.
Morrow adds that the $1 billion dollars gained in the forecast didn’t come from a growing economy.
Morrow says the state gained when Congress approved tax cuts in December that gave some Minnesotans some capital gains benefits. The state also gained $165 million when Governor Dayton signed Minnesota into early medical assistance.
“There are signs that the economy could take a turn to the south,” says Morrow. “Especially if the Middle East crisis continues and/or if gas prices go up. That’s one of the big wild cards.”
Long term Morrow says the state will have to address what he calls a “structural imbalance.” The state had balanced previous budgets by the shifting of money
“All those efforts didn’t address the on going problems, they were just short-term fixes,” according to Morrow.
LISTEN to our entire interview with Rep. Morrow