Federal stimulus $ reduces state deficit
The money provided by President Obama's federal stimulus package has actually reduced the state's budget deficit. With $
2.2
$1.8 billion in federal stimulus, the state has a surplus of $236 million in the current budget that ends on July first. For fiscal years 2010 and '11, the state is facing a $4.57 billion deficit. Finance officials said the deficit would have been more than $6.3 billion without the federal stimulus money.
The new number will guide lawmakers for the remainder of the legislative session, as they try to come up with a plan to erase the red ink. In November, finance officials projected the budget deficit to be nearly $5 billion over the next two years.
The governor has proposed the use of one-time money, accounting shifts and cuts to erase the deficit. DFL legislative leaders have yet to propose a budget balancing plan. Lawmakers and the governor are required by the state constitution to balance the budget.
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