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State budget surplus comes with warnings

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ST. PAUL -- Jaws dropped this morning as Minnesota leaders learned the state budget will be $876 million bigger than earlier thought.


But the news came with warnings:

-- A $1.3 billion deficit is expected in two years.

-- The Minnesota economy could take another turn for the worse if the European economy stumbles.

-- The good news depends, in part, on continuation of a federal tax cut established in the President George W. Bush years.

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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.