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Gov. Tim Pawlenty delivers his seventh State of the State address on Jan. 15, including a long list of business tax breaks among his proposals. Behind him is House Speaker Margaret Anderson Kelliher. (Don Davis/St. Paul Bureau)

Pawlenty releases budget, looks to feds for stimulus money to bridge deficit

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ST. PAUL - Local governments, health providers, colleges and pretty much every other group that depends on state money took a punch in the gut today when Gov. Tim Pawlenty released his proposed budget for the next two years.

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Pawlenty's budget plan calls for $33.6 billion in spending, down 2 percent from the state's existing $34.4 billion budget. The announcement is the start of substantive budget discussions at the Capitol.

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