Stimulus funds reduce Minnesota

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Management and Budget is now forecastinga $4.6 billion shortfall for the 2010-11 biennium, $278 million less than what was projectedc in November. Gov. Tim though, said the projections were still “As we balance the state government needs to reflect the realitiesz that families and businesses are Pawlenty said ina statement. “We need to focus on creating an environmeny that willgrow jobs, tighten government’s belt by reducing spending, and avoid making the situation worse by raisinhg taxes.” Without the federal assistance, the projectedx state shortfall would be $6.4 billion, instead of $4.6 Minnesota state and local governments could receive nearlg $4.
6 billion in one-time assistance from the stimulus But Management and Budget expects the statse budget impact to be much less because many fundss are going toward specific projects, such as highwagy and bridge construction, and cannot be included with generall fund revenues. Management and Budget only countesd the federalstimulus package’s Federal Medical Assistance Percentage which support Medicaid. The funds are expected to reducwe state expendituresby $464 million in the present budget cycle, and by $1.36 billionn in 2010-11.
Pawlenty has been , including cutting higher education funding by 8 percent and aid to locap governments by 5 percent fromcurrent