Local

Officials: Fiscal Cliff Would Harm Minn. Economy

View Comments

Get Breaking News First

Receive News, Politics, and Entertainment Headlines Each Morning.
Sign Up
Today's Most Popular Video
  1. St. Paul Police Form Mentorship Program With YWCA
  2. Interview: Justice Alan Page Talks Children's Book Project
  3. 4 Things To Know For Dec. 21, 2014
  4. ‘Black Lives Matter’ Protest Locks Down Mall Of America
  5. Interview: Michele Bachmann Talks Sony Hack, Cuba

ST. PAUL, Minn. (AP) — Minnesota budget officials say the state’s economy would be hit hard if President Obama and Congress can’t strike a federal debt deal to avoid the so-called fiscal cliff.

The warnings from officials at Minnesota Management and Budget came Wednesday as they announced their economic forecast. The agency says Gov. Mark Dayton and state lawmakers face a projected $1.1 billion budget deficit next year, the smallest in some time.

But State Economist Tom Stinson says that would get considerably worse under a fiscal cliff scenario in which federal spending cuts and higher income taxes take effect. He predicts the state would shed 115,000 jobs in 2013-14, and personal income would drop more than 4 percent by 2015. He also says state tax revenue would drop by hundreds of millions of dollars.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

View Comments
blog comments powered by Disqus
Follow

Get every new post delivered to your Inbox.

Join 2,397 other followers