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Gov. Tim Pawlenty, a Republican, says on Tuesday that Democratic legislative leaders should present a balanced budget plan by mid-March. He said budget news released Tuesday is a step in the right direction. Pioneer Photo/Don Davis

State's budget picture better, but not by much

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ST. PAUL -- Minnesota's current budget picture is a bit brighter than three months ago, but the next budget could be the state's biggest-ever financial challenge.

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