ST. PAUL, Minn. (AP) — The impasse over the fiscal cliff in Washington is casting enormous uncertainty over the economic forecast in Minnesota.

And that will complicate Gov. Mark Dayton’s task of assembling a two-year budget proposal.

A fresh analysis of the state budget outlook is due Wednesday. But Minnesota finance officials say their economic forecast will have a shorter shelf life than usual because the federal tax-and-spending showdown will likely affect whether the state outlook gets better or worse. At last check, another state deficit loomed but it was modest by recent standards.

Democratic President Barack Obama and a divided Congress have until month’s end to reach a deal to avert automatic across-the-board tax increases and spending cuts.

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 This material may not be published, broadcast, rewritten or redistributed.)


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