Officials say the state is looking at a potential reduction of $1.2-$1.6 billion in Medicaid funding per year and that just over a third of the state’s current budget comprises federal funds.

The latest Minnesota state revenue forecast comes out on Thursday, and it will set the tone with how lawmakers will craft a budget by the end of the current legislative session. Like usual, the pre-forecast slings and arrows are flying.

Legislators are already weighing the ways they might have to bridge budget gaps if federal officials cut funding streams to Minnesota. A new economic forecast is released on Thursday.