CHICAGO - The Minnesota Legislature adjourned just before its Monday deadline after reaching a bipartisan agreement with Gov. Tim Pawlenty to eliminate a nearly $1 billion budget deficit, primarily by cutting spending and by dipping into reserves.

The state will use about $500 million from its budget reserve and cut $355 million in spending. The remainder of the projected $936 million of red ink in the current two-year budget that runs through June 30, 2009 would come from revenue raised relative to a change in how foreign-operated companies are taxed.

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