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Minn. stands to lose $90M from federal cuts

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news Bemidji, 56619

Bemidji Minnesota P.O. Box 455 56619

ST. PAUL, Minn. (AP) — Minnesota state budget officials say state programs stand to lose $90 million a year in federal funds due to across-the-board spending cuts.

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State Budget Director Margaret Kelly briefed Minnesota lawmakers Friday on effects of the federal sequestration. She says it's still largely unknown how those spending reductions could play out in the coming weeks and months.

Kelly says some of the $90 million in federal reductions could be offset by specified increases in funding approved by Congress.

Areas where cuts have been noticeable so far include Head Start programs serving infants, toddlers and preschool children from lower-income families. Minnesota's Head Start Association says state programs got notices on March 1 to start making enrollment reductions that are likely to mean hundreds of young children losing services.

Copyright 2013 The Associated Press.

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