Pawlenty Makes Budget Cuts

(AP) Governor Tim Pawlenty is cutting aid to Minnesota Cities, Counties, and Townships by $330 million as he tries to close a $2.7 billion budget shortfall for the State. The next biggest cuts come to State Health and Welfare programs losing $236 million. Pawlenty's plan calls for ending the State's General Assistance Medical Care Program on March 1st of 2010. Pawlenty is also deferring State aid to K-12 schools by $1.8 billion in fiscal 2010--though schools will get their full aid entitilement in the second half of the fiscal year. Higher Education funding for State agencies will be cut by $100 million, and State agencies need to cut $33 million from their budgets. Republican Governor Pawlenty is using his power to "unallot" spending, after he and Democrats controlling the Legislature could not agree on a budget deal.