Minn. Lawmakers Brace for Dreary Economic Forecast

ST. PAUL, Minn. (AP) - State leaders are bracing for bad news out of the economic forecast that sets the stage for upcoming Minnesota budget deliberations.

Finance officials detail Wednesday how expected revenue and spending match up. All indications are that Minnesota will face another steep deficit. That will undoubtedly mean another round of spending cuts on top of the billions already shaved from state programs in the last few years.

Minnesota tax collections have lagged expectations by more than $200 million since the last forecast was released in March.

Gov. Tim Pawlenty said last week that he's inclined to hold off on any budget fix until the Legislature reconvenes in February. But he didn't rule out withholding payments or making other budget cuts beforehand if the budget problem is more acute than anticipated.

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