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UPDATED: State budget shows a surplus of $876 million, but not all good news

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$1.3 billion deficit still expected in 2 years

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.

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