The new state revenue forecast is released Friday morning, and Gov. Tim Pawlenty says he is bracing for bad news.
The governor says the housing problems, the credit crunch, and high oil prices all point to a downturn in the state's financial situation, although he says doesn't know just how bad it will be.
The forecasts, issued twice each year, combine spending projections and revenue estimates to determine whether the state budget is on track, whether a surplus is likely, or whether the state is facing another budget deficit.
Other recent economic reports indicate that Minnesota's economy is slowing down, and it's weaker compared to other states than it has been historically.
We look at the history of Minnesota's economic situation, and whether that is changing.