ST. PAUL, Minn. (AP) — A panel of Republican lawmakers has given Gov. Mark Dayton’s budget chief its stamp of approval for the state to borrow from a line of credit if necessary to meet cash flow needs in a shaky economy.

The Legislative Advisory Commission to Minnesota Management and Budget took the unanimous step Thursday at the request of agency chief Jim Showalter, who says he is hoping that short-term borrowing isn’t necessary but wants to be prepared if it is.

At the hearing, State Economist Tom Stinson says forecasts for growth in the state’s economy have dropped by more than half from February to September, which could bode poorly for a state budget forecast in November. At the same time, state tax collections are up in recent months.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments (5)
  1. Horace Mann says:

    “Cuz it’s always better to borrow the money and pay interest on top of that than make a millionaire pay the same percentage of his/her income than a bus driver.

    1. dan says:

      Keep your head in the sand Horace.

      Someone making a Million Dollar per year salary pays a much larger percentage of hios income than any bus driver.
      Now if you are taking about dividends on investments that’s a different story. these are earnings on money they already paid tax on plus the corporation paying the dividend has paid tax on these same dollars. For you to think you need a bigger chunk of dividend or interest earnings shows how little you know and how bad your party is going to get whipped in the next election.

  2. BUILD IT says:

    Washington Redskins owner Dan Snyder is now the proud owner of a $70 million 224-foot “super-yacht.”

    The Washington Post’s Reliable Source reports that Snyder’s recent purchase, the Lady Anne, is one of the 100 biggest yachts in the world.


  3. BUILD IT says:

    Credit agencies will love this, borrow more money! So they can lower the state rating again! Build that stadium! Typical republican way out, Borrow money..

  4. Tom says:

    Lets see the GOP labels Dems as Tax and Spend Liberals and we label the GOP as Borrow and Spend Conservatives. So which creates debt? Borrowing is what creates debt. But in some odd way conservatives believe in borrowing so that they don’t have to raise taxes. And yet it is the conservatives who are complaining about the debt.

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