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Associated Press, Published May 06 2010

Court ruling puts Minnesota at risk of cash shortage

ST. PAUL (AP) — Minnesota risks running out of money if those affected by overturned budget cuts seek immediate back pay.

A spokesman for Republican Gov. Tim Pawlenty said Thursday the state doesn't have the money on hand to cover $2.7 billion in cuts thrown into doubt by a Supreme Court ruling. The spokesman, Brian McClung, says while the ruling was tailored to a special nutrition program others hit by Pawlenty's 2009 cuts may ask to have state allowances restored.

Legislative leaders met for an hour with Pawlenty and members of both parties emerged to describe the fiscal crisis.

Pawlenty has asked lawmakers to pass a bill ratifying the earlier cuts. On Wednesday, the Supreme Court ruled that he overstepped his authority by making the spending reductions on his own after negotiations with the Legislature reached impasse.

Copyright 2010 The Associated Press.