State finance officials predict $4.427 billion budget deficit in ’12-’13

Minnesota Management and Budget Commissioner Tom Hanson released a letter to DFL legislative leaders today regarding Governor Pawlenty’s unallotment plan. The letter confirms that Governor Pawlenty’s decision to balance the budget on his own will only be a short-term fix and that Minnesota’s budget problems will continue even after he leaves office.

In the letter, Hanson wrote that “the projected budgetary shortfall FY 2012-13 under the proposed unallotment plan would be $4.427 billion.” He also wrote the estimate does not include restoring General Assistance Medical Care. If the subsidized health insurance program for the poor was restored, it would cost an additional $888.7 million.

I’ll post the full letter once I create the link. Here’s the letter.

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