Minnesota’s 2010 Budget Deficit Among Top 10 Largest In Nation

With updated budget numbers expected in the coming weeks, Minnesota’s current $2.6 billion projected budget gap for 2010 ranks as one of the top 10 largest in the nation, according to new numbers compiled by the Naitonal Conference of State Legislators.

Minnesota’s 14.7 percent budget deficit ($2.6 billion) for 2010 is the 10th largest in the country, as a percentage of the state’s general fund budget.

All but four states (Montana, North Dakota, West Virginia, and Wyoming) have reported budget gaps for either 2009 or 2010. And more than 30 states are already reporting budget gaps for 2010, with more expected to be added to that list in the coming month.

The Gopher State also has the third highest deficit in the Midwest, behind Wisconsin (ranked #7 at 17.2 percent) and Kansas (#8 at 17.0 percent), but greater than Michigan (#14, 12.3 percent), Iowa (#17, 11.5 percent), Nebraska (#27, 7.3 percent), and South Dakota (#28, 6.7 percent).

Some states, such as North Dakota, are expecting budget surpluses of hundreds of millions of dollars while others have much larger reserve funds to alleviate any potential budget shortfall (such as Indiana, at $1.4 billion).

The new February forecast for Minnesota’s budget is expected to be delivered by State Economist Tom Stinson on March 3rd.

FY2010 Budget Deficit As a Percentage of State General Fund Budget

N/A = information not yet available or state not projecting a budget deficit for 2010.
Source: compiled from “Update on State Budget Gaps: FY 2009 & FY 2010,�? National Conference of State Legislators.