Friday, July 17, 2009

No green shoots on Minnesota's horizon 

Confirming yesterday's employment report, we find this sentence in the state budget update:
While some of the lost withholding revenue appears to reflect smaller than anticipated bonus payments made in early 2009, withholding receipts in April, May, and June averaged more than $20 million per month below projections, consistent with weaker wage and employment growth than anticipated in February�s forecast.
The always downbeat Global Insights forecast offered by the MN Finance Department for their budgeting is forecasting -0.8% real GDP growth for 2010. Real income strongly influences midterm elections: Is it any wonder then that Congress (and the Minnesota DFL) is growing ever more worried about the state of the economy?

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