Minnesota’s projected state budget deficit has narrowed from $6.2 billion to $5.028 billion, according to two people who’ve seen new budget documents.
State officials are set to release a new economic forecast later today. The new number will guide budget discussions for the remainder of the 2011 legislative session. But despite the improvement, there’s still a wide divide between DFL Governor Mark Dayton and Republican legislative leaders over how best to erase the remaining red ink. Dayton has proposed a significant increase in revenue, including an income tax increase on upper earners. Republicans oppose any tax increases and want government to live within its existing revenue.
Update: It’s official.
Here’s the full budget forecast: