CHICAGO - Minnesota faces a record $5.2 billion deficit in its current budget and through the next two-year spending cycle, a number that prompted several lawmakers to propose leasing the state's lottery and main airport to raise revenue. The budget situation also prompted warnings of the need for steep cuts, tax and fee increases, and draining reserves to erase the red ink.

The annual November forecast - traditionally released in early December - anticipates a revenue shortfall of $412 million in the current biennium that ends June 30. With some small increases in spending, the current budget deficit would increase to $426 million.

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