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For Immediate Release: December 5, 2003

OTTO: BUDGET FORECAST MAY STILL BE "TOO ROSY"

With the announcement yesterday that the state is facing yet another
deficit, Rep. Rebecca Otto restated the call she made last session that the
legislature and administration be forced by law to include inflation when
forecasting or accounting budgets.

"Last Spring I disagreed with both party's budget plans for this very
reason," said Otto. "I voiced concern then and I'm voicing it again now. We
simply have to deal with the budget using conservative projections, so we're
not caught up with more painful shortfalls."

The new budget and economic forecast from the state Finance Department
states that Minnesota will face a $185 million shortfall in the 2004-05
budget, and a possible $440 million shortfall lying in wait in 2006, Otto
added.

But factoring in inflation means the real deficit in the next three years
could be $1 billion or more.

"Starting a few years ago, we dropped the requirement to include inflation
in the budget," said Otto, "and now what's happening is it's being included
in the revenue side, but not in the expense side, which risks making our
state budget appear rosier than it should on income and falling short of
reality on expenses." Otto says this worries her. "This is not the kind of
accounting we in business are comfortable with and it concerns me."