ST. PAUL -- Minnesota is expected to take in $1.3-billion dollars more over the next biennium, but that money will be immediately spent by paying back schools.

The latest budget forecast outlines what would then be a deficit of $1.1-billion.

Republican State Representative Steve Gottwalt of St. Cloud says tough decisions in 2011 has put the state in a good position...

Republican State Representative Tim O'Driscoll of Sartell says they worked hard in 2011 to put the state in this position.  But, Minnesota comes under full Democratic control next year for the first time since 1991, giving Democrats latitude to raise taxes after years of Republican resistance.

State officials have also said the forecast could quickly become obsolete if federal debt talks don't head off the so-called fiscal cliff.