ST. PAUL (AP) — Many Minnesota school districts face budget deficits despite the biggest single spending increase in last year's bipartisan two-year $540 million budget deal in education funding.

This could result in layoffs for staff and elimination of services if the Legislature doesn't give schools some of the state's projected $1.3 billion surplus.

School-spending watchdogs say districts need to live within their means. Sen. Roger Chamberlain works to set state education-funding levels every two years. He says any chance for more money will come after the $1 billion of the budget surplus that lawmakers want to give back to taxpayers.

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