After reaching an agreement with Governor Pawlenty late on Sunday, the legislature went into a brief special session to formalize the terms. The good news is that Pawlenty’s insistence on no new taxes won the day; the legislature had to find the funds within the existing revenues. Moreover, most of the “unallotments” made by Governor Pawlenty in 2009 that were disallowed by the Minnesota Supreme Court have been enacted (but not made permanent). Like many businesses and families, our elected officials had to figure out how to live with less. The state is still left with a projected deficit of about $5.8 billion for FY 2012-13. That number will be higher if the nearly $2 billion shifted from K-12 education in 2011 is not repaid.

This entry was posted on Monday, May 17th, 2010 at 2:24 pm and is filed under Blog Posts, Deficit, Kim Crockett, Limited Government, Tax Policy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.