Officials from MMB had some worrisome news on the state's fiscal future in light of the still-struggling economic recovery and increasing chance that the U.S. will face another recession.

As recently as February 2008, Minnesota’s fiscal situation was cushioned by $1 billion in reserves, and state officials did not need to worry about cash flow.

State DFL Chair Brian Melendez says Republican Gov. Tim Pawlenty and would-be GOP governor Tom Emmer have different accounts of the state’s budget issues, and the Republican Party of Minnesota needs to straighten it out.

Though Minnesota has managed so far to avoid borrowing to meet the state's day-to-day payment obligations, its good luck (and capacity for fiscal manipulation) is likely to run out before the end of FY2011 on June 30 of next year, and possibly as early as this fall.

Last Thursday the state issued a request for proposals (RFP) for a loan or line of credit of $600 million to shore up Minnesota's finances. The deadline for those proposals is February 25.