The main task for the new governor and incoming legislature will be to solve a $6.2 Billion shortfall projected for the 2012-13 Biennium.  The projected deficit and other expenditure and revenue trends were announced on December 2, 2010 in the November 2010 Forecast by the Minnesota Department of Management and Budget.

Although the legislature is required to balance the budget based on the February 2011 forecast, today (Thursday, as we go to press) we received the preliminary look at what the challenges will be in the coming session.  According to the forecast, FY 2012-13 revenues are now forecast to total $32.004 billion and biennial spending is projected to be $38.591 billion, leaving a projected budget shortfall for the 2012-13 biennium of $6.188 billion - $593 million worse than previous estimates.

The only good news is that the remainder of the FY 2010-11 is now projected to have a positive balance of $399 million, which means the there will not be any unallotments or short term borrowing by the state.

To review the budget forecast document, go to the Minnesota Department of Management and Budget at http://www.doer.state.mn.us/fu-2010-nov.

At this point, the narrative issued by Minnesota Department of Management and Budget is difficult to determine, because increases for the 2012-2013 biennium are driven in part by the end of the enhanced federal medical assistance percentage (FMAP) and state fiscal stabilization funding received under the federal stimulus.  Care Providers of Minnesota will be analyzing the specific budget documents in the near future in order to determine the actual budget growth of nursing facilities, the elderly waiver program, and other older adult services.

Please contact Todd Bergstrom at the Association office if you have any questions.

Todd Bergstrom
952.851.2486
tbergstrom@careproviders.org

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