Gov. Tim Pawlenty’s budget team has informed legislators that the state might have to borrow money early next year to cover its bills.

It would be the first time the state has had to take such an action in 25 years, when a four-year stretch of such borrowing cost the state almost $125 million to service loans.

Minnesota Management and Budget Commissioner Tom Hanson told a legislative panel Thursday that his agency is beginning to develop short-term borrowing plans.

Hanson said borrowing is only a possibility and would be needed if a revenue slide persists. He said he was raising the prospect to make sure the state was prepared and didn’t have to react at the last minute.

Some business tax refunds already are being delayed to account for revenue dips.