ST. PAUL, Minn. -- Federal stimulus aid will blunt the pain when Minnesota's budget forecast is updated on Tuesday.
The outlook will include an influx of nearly $2 billion in federal Medicaid dollars to help the state with health care programs.
The federal cash will offset financial problems that have worsened along with the economy.
Three months ago, state officials foresaw a two-year shortfall of $4.8 billion, or about 13 percent of the state's budget. Gov. Tim Pawlenty has said that number could be closer to $6 billion or $7 billion. But that's not including the federal stimulus aid.
Even more stimulus aid could show up in the final budget, as Pawlenty and lawmakers figure out ways to use other parts of the stimulus package to help dig the state out of its financial hole.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
