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Minnesota State Economist Tom Stinson, center, addresses media Tuesday at the Capitol in St. Paul as he announces a budget deficit of $4.57 billion. Also pictured are State Budget Director James Schowalter, left, and Budget Commissioner Tom Hanson. AP Photo/ Craig Lassig

Sinking budget gets brief life raft

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ST. PAUL -- Federal money may have saved Minnesota's budget this year, but state leaders warn that economic problems are far from over.


Economic stimulus funds approved last month by Congress and President Obama lowered Minnesota's projected 2010-2011 budget deficit from $4.8 billion to $4.6 billion.

But the 2012-2013 deficit is expected to be even larger.

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