Next budget forecast to show shortfall

Gov. Tim Pawlenty says he expects a new economic forecast coming next week will show a hole in the current two-year budget.

Pawlenty says he anticipates a shortfall because the economy is still slow and state tax collections have been lagging behind projections.

But unlike a year ago, the Republican governor says he doesn't foresee a need to take corrective action on his own to balance the books.

Pawlenty told reporters that he thinks decisions on spending cuts can wait until legislators return to the Capitol in early February.

"Circumstances could be very challenging, and we want to make sure that our actions are timely and impactful. But we'll take every effort we can to include the the Legislature, and give them an opportunity to be involved in the solution," he said.

State finance officials are set to release their economic forecast December 2. Earlier reports showed tax collections down by $233 million for the fiscal year.

A spokesman for the governor said later that Pawlenty hopes to work with the Legislature, but that he hasn't ruled out cutting spending on his own if it becomes necessary.