When Gov. Tim Pawlenty included $387 million in anticipated federal FMAP (Medicaid) funding in his proposal to solve the state’s budget deficit, Democrats gleefully attacked the move as budget gimmickry. They pointed out — repeatedly — that the money had not yet even been appropriated by legislators in Washington.
Minnesota Management and Budget Commissioner Tom Hanson said today he's "not foolish enough" to think the final bonding bill will be $725 million. But at this point, Gov. Pawlenty maintains that $725 million is the limit.
The state’s 2010-2011 general fund deficit dropped by more than $200 million on Tuesday in the semi-annual economic forecast.
Key legislators met Thursday night with Gov. Tim Pawlenty's point people on health care and budget matters in closed-door talks on the general assistance medical care (GAMC) proposal.
Finance Commissioner Tom Hanson had the unenviable task earlier this week of defending Gov. Pawlenty's plan to close the state's budget deficit to a gathering of the Balanced Budget Subcommittee of the Legislative Commission on Planning and Fiscal Policy.
Last Thursday the state issued a request for proposals (RFP) for a loan or line of credit of $600 million to shore up Minnesota's finances. The deadline for those proposals is February 25.
State Sen. Richard Cohen is frustrated that lawmakers aren't tackling proposals that would insulate the state's budget from large deficits.
The chair of the House Capital Investment Committee hopes to move quickly on a major bonding bill in the upcoming legislative session.
State finance officials again told a legislative panel on Wednesday that Minnesota may need to borrow money as early as this spring simply to keep the state's cash flow in the black.
State budget officials are looking at emergency options to avoid short-term borrowing before the fiscal year ends on June 30.
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