2009: State Budget Deficit is $4.57B

With the $1.3 billion in federal help, the state still has a $4.57 billion spending gap for 2010-11.

STAR TRIBUNE by Patricia Lopez and Mike Kaszuba, March 4, 2009

Minnesota's new budget forecast is not as dark as had been predicted, thanks to a temporary boost from federal stimulus dollars. But look deeper and there are still plenty of worries ahead, virtually guaranteeing hard times for Minnesotans and hard-edged conflict at the State Capitol as leaders attempt to climb out of the deepest fiscal valley in generations.

"We're in the worst recession in the post-war era," said state economist Tom Stinson.

The global economic crisis that has MN it its grip is projected to cost another 70,000 jobs in the coming year. Before it's over, MN's job losses could reach 120,000 – equal to three year's worth of typical job growth. Unemployment, already at 7.6% in Minnesota and nationally, could gallop to 9.4% this year, and double digits "would not be a surprise," Stinson said.