State Budgets: Minnesota Cuts to Balance Current Budget; Seeks Input for Next Budget

Minnesota’s $37 billion 2010-11 biennial budget is expected to have a $4.85 billion shortfall, with revenues falling and spending slightly up from the current budget. Gov. Tim Pawlenty (R) and many legislators agree that tax increases are unlikely and unable to fix the entire shortfall. Lawmakers have created a website to seek input on how to balance the budget. To fix the current budget’s $426 million shortfall, Pawlenty has proposed drawing down the remaining $155 million in reserves and cutting $271 million in spending, especially state aid to local governments. K-12 education and public safety are exempt from the cuts.

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