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.
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