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Tim Pugmire
St. Paul, Minn.

Lower sales tax revenues may hamstring arts, outdoors projects

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State officials say lower-than-expected sales tax revenue could have an impact on the planned spending for outdoors and cultural projects.

A voter-approved sales tax increase was expected to generate an estimated $234 million for dedicated funding in the current fiscal year.

State lawmakers approved plans for spending most of that money during the 2009 session on habitat, water, park and arts projects. The new tax began July 1st, but overall sales tax collections for the year are down 5 percent.

During a House committee hearing today, Mike Salzwedel of the state Department of Management and Budget told legislators the November economic forecast will help decide if spending changes are needed.

"If the November forecast shows continuing downward pressure on the receipts, it may be necessary to revisit those agency spending plans and get revised numbers," he said.

Salzwedel says Management and Budget has already advanced about $9 million to the dedicated state funds to allow spending on the approved projects to begin.