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Update: State budget surplus comes with warnings

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ST. PAUL -- Jaws dropped this morning as Minnesota leaders learned the state budget will be $876 million bigger than earlier thought.


But the news came with warnings:

-- A $1.3 billion deficit is expected in two years.

-- The Minnesota economy could take another turn for the worse if the European economy stumbles.

-- The good news depends, in part, on continuation of a federal tax cut established in the President George W. Bush years.

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