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Minn. Leaders Brace For Deficit In The Billions

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Nov 21, 2008 7:04 pm US/Central

Minn. Leaders Brace For Deficit In The Billions

ST. PAUL (AP) ― State House and Senate fiscal analysts are predicting a deficit of as much as $4 billion for the coming two-year budget period.

The prediction was contained in a chart shown to members of a legislative planning panel on Friday.

The analysts say their calculations aren't as comprehensive as those made by state finance officials, who will give an official budget forecast on Dec. 4.

Still, the projections are prompting state leaders to prepare for a tough session next year.

Democratic House Speaker Margaret Anderson Kelliher says the chart is frightening.

Gov. Tim Pawlenty said on his weekly radio show that he expects a multi-billion-dollar deficit and the state will have to tighten its belt.

DFL Senate Majority Leader Larry Pogemiller says lawmakers might start by reorganizing the Department of Employment and Economic Development, where he says a shakeup is needed.

But Pawlenty spokesman Brian McClung says cutting job creation programs during bad economic times is a bad idea.

(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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