CHICAGO - Minnesota Gov. Tim Pawlenty yesterday unveiled a two-year, $57.6 billion budget that relies on a 2.2% cut in general fund spending and $3 billion in one-time infusions of revenue - including nearly $1 billion of tobacco bonds and $1 billion from the federal government - to remain in the black.
The $57 billion figure includes a general fund budget of $33.5 billion, which is about $750 million less than the current two-year budget in place. The broad budget cuts and other savings would trim about $2.5 billion in spending during fiscal 2010 and 2011. The majority - $2.36 billion - would come in the form of permanent spending cuts, while the other $153 million would come from a one-time transfer in funds in a health care account.