State economist Tom Stinson has been saying for a while that Minnesota is in a recession, and the new February Forecast assumes that is the case as well. The forecast assumes that the national economy is in a recession, but that the situation brightens in the second half of the year, as the federal stimulus plan starts to have an impact. After that, it’s slow growth in the beginning of 2009.
Not good news, but I don’t think anyone was expecting any. So the numbers are these:
- $935 million budget deficit for FY 2008-09
- $2.1 billion deficit for FY 2010-11 if the impact of inflation is included.
– Nan Madden