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St. Paul, Minn. — Gov. Tim Pawlenty on Tuesday proposed a budget that cuts state spending by 2.2 percent and relies on federal stimulus funding to help erase an expected deficit of nearly $5 billion.

Higher education, aid to local governments, along with health and human services programs would all be cut under the governor’s proposed budget.

Administration officials say 84,000 people would lose eligibility for state health programs over the next two years, but the governor says his plan would protect children who get state help.