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Capitol View®
Tim Pugmire

DFL leaders say federal money is for jobs, not state budget deficit

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DFL legislative leaders are trying to lower expectations about the federal economic stimulus bill, and its potential impact on Minnesota's $4.8 billion budget deficit.

House Speaker Margaret Anderson Kelliher and Senate Majority Leader Larry Pogemiller held a private meeting today at the State Capitol with three members of Minnesota's congressional delegation. After the meeting, Pogemiller told reporters that the message from Representatives McCollum, Oberstar and Peterson was that the federal money is not for balancing the budget.

"This money is meant to create jobs," Pogemiller said. "Some of it will be used in a way that helps us stabilize our situation. But there should not be an expectation from Minnesotans or the executive branch that this solves Minnesota's budget problem. We still will have to make some very difficult decisions to get our budget under control."

Earlier this week, Governor Tim Pawlenty released a budget proposal that counts on at least $920 million in federal aid to balance the books.