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Tom HansonCommissioner Tom Hanson of Minnesota Management and Budget listens to a reporter's question Tuesday after he announced a budget deficit of about $4.6 billion. Staff photo by Don Davis

Federal money makes Minnesota deficit smaller

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ST. PAUL - Federal money may have saved Minnesota's budget this year, and will help the next two-year spending cycle, but state leaders warn that economic problems are far from over.


Economic stimulus funds approved last month by Congress and President Barack Obama lowered Minnesota's projected 2010-2011 budget deficit from $4.8 billion to $4.6 billion. But 2012-2013 deficit is expected to be even larger.

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Don Davis
Don Davis has been the Forum Communications Minnesota Capitol Bureau chief since 2001, covering state government and politics for two dozen newspapers in the state. Don also blogs at Capital Chatter on Areavoices.