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State revenues up, but global concerns cloud the future

Minnesota is doing better than the rest of the nation on the jobs front and with state revenues, but fears of a recession make it difficult to predict future patterns.

That’s what officials from Minnesota Management and Budget told the Legislative Advisory Commission Thursday.

The state’s cash flow projections look good, but there could be times this fall and in the spring when it gets tight, says a story about the meeting in Politics in Minnesota. While they don’t expect to need to borrow, budget officials did ask for, and got, permission to access a short-term line of credit, if needed.

State Economist Tom Stinson told the group that while state revenues are up, national and global uncertainty make it unclear how that will hold up in the coming quarters.

High gas prices, the hurricane problems on the East Coast, Japan’s earthquake and global debt problems could lead to lower consumer spending, and thus lower tax revenues.

State officials will have a more thorough budget forecast in November.

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