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St. Paul, Minn. (AP)

Pawlenty signs bill to erase $3B Minn. deficit

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Gov. Tim Pawlenty has signed a budget bill that eliminates Minnesota's $3 billion deficit.

Pawlenty's office said he signed the legislation on Friday.

Lawmakers approved the bill during a short special session Monday after the Republican governor and Democrats who control the Legislature agreed on details.

It delays almost $2 billion worth of state payments to schools and ratifies many spending cuts Pawlenty made on his own last year. The courts later overturned those cuts but lawmakers had little choice but to accept them because of the state's financial problems.

The bill also allows Pawlenty or the next governor to sign Minnesota up for expanded Medicaid coverage for low-income adults using federal dollars. Pawlenty is not expected to do so.

Pawlenty has also rescinded an emergency order requiring cabinet members to find ways to cut off spending on short notice. (Copyright 2010 by The Associated Press. All Rights Reserved.)