Pawlenty predicts better budget news

Pawlenty on the deficit
Gov. Tim Pawlenty says the newest state budget forecast, due out tomorrow, will be somewhat brighter than the nearly $1 billion deficit predicted in February.
MPR Photo/Tom Scheck

Gov. Tim Pawlenty says a state economic update scheduled for release tomorrow will provide some relatively good news for Minnesota.

Back in February, state Department of Finance officials projected a $1 billion shortfall for the 2010-2011 budget cycle.

But Pawlenty told reporters today the department's latest calculations will show that revenue from tax collections this year has been exceeding expectations. He declined to reveal the dollar amount.

"The February forecast was projecting a pretty negative situation. And it looks like it's improved somewhat. That doesn't mean it's become an entirely positive situation. It's just not, at the moment, as bad as they thought in February," said Pawlenty.

He cautioned that monthly collection numbers can bounce around dramatically. He says the numbers should be looked at over time before drawing any conclusions.