(AP) - Minnesota's top economist says Bernard Madoff's alleged $50 billion Ponzi scheme could deepen the state's deficit by $20 million or more.
State economist Tom Stinson says losses to bilked Minnesota investors will show up on state income tax returns. He says he doesn't know how much local investors lost, but some estimates put the figure at $300 million or more.
At that level, Stinson says the state would lose $20 million to $30 million in tax revenue.
Minnesota already faces a projected deficit of $4.8 billion -- a gap that's expected to grow when officials update the budget forecast in early March.
Stinson says the forecast will include a guess for Madoff-related tax losses. Investors can take the losses on 2008 taxes and file for refunds by amending past returns.
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