WINONA, Minn. – State Representative Gene Pelowski, D-Winona, has doubts about the new upbeat state budget projection. “Many of us are questioning the validity of these budget forecasts,” Pelowski said in an interview on radio station KWNO. He suspects that budget projectors have misjudged the havoc that the pandemic has wreaked on Minnesota’s economy. It’s possible, he said, that normal criteria used in projections just aren’t right for what’s happening. Pelowski said a misjudgment may rest on yet-to-arrive federal stimulus packages and guesses at drops in school enrollment.
Earlier: New Minnesota state budget forecast rosy
Budget thoughts
The December forecast from the state Budget Office showed a $641 million surplus for the upcoming fiscal year and a $1.2 billion deficit for the following year. In contrast, the July forecast had $4 billion deficit.
