The Daily Digest

Gov. Pawlenty holds a meeting today with his cabinet to discuss what his administration is calling an unprecedented cash flow crisis. His spokesman is warning that the state could run out of money if any other groups petition the court to have the funds reinstated.

The strategy appears to serve Pawlenty in two ways. It deflects blame to a judge who could reinstate the cuts. It also puts a bulls-eye on any group that petitions the court for the funds and ends up forcing the state to drain its cash flow account.

One key thing to remember is that Pawlenty, not a judge, signed the spending into law but vetoed the tax bill to pay for it. The spending is the law of the land because of Pawlenty's signature.

Here's a look at Minnesota's budget picture over time.

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The Wall Street Journal says Pawlenty's woes may help him at home.

Four metro hospitals agreed to enter the new GAMC program after the Pawlenty Administration reversed course and agreed to limit the number of patients a hospital has to accept. No rural hospital agreed to the plan yet.

A bill to create a health insurance pool for teachers is headed to Pawlenty's desk.

GOP Rep. Steve Drazkowski introduced legislation that would create an immigration law similar to the newly enacted Arizona law.

The House passed the Legacy dedicated funding bill for outdoors projects.

The MN House lifts a ban on new construction of nuclear power plants.

DFL House Leadership also made a move to ensure that a bill that could change how voters are elected keeps moving through committee.

Congress

President Obama now supports an audit of the Federal Reserve.

The Interior Secretary says no new offshore drilling permits will be issued for three weeks.

DFL Sen. al Franken says Arizona's law on immigration goes too far.

Ethanol backers urge a tax credit expansion. DFL Reps. Tim Walz and Collin Peterson are mentioned.

GOP Rep. Michele Bachmann pushes 10th Amendment rights.

DFL Rep Jim Oberstar wants the Department of Justice to investigate a Continental/United merger.

Race for Governor

Republican Tom Emmer leads his DFL rivals in a KSTP/Survey USA poll.

The Independence Party is set to endorse a candidate for governor this weekend. MPR says the party s looking to be the party of middle ground.

Democrat Matt Entenza pushes for more green jobs. Watch video of the newser here.

Race for Congress

DFL Rep. Tarryl Clark launches a website called "Michele Bachmann said what?"

Pawlenty for Prez Watch

Pawlenty cancels his South Carolina trip because of the state's budget problems.

Frum Forum says Pawlenty is working to get his name out there.

South Dakota Sen. John Thune raises his national profile.

2012

SEIU boycotts Arizona meaning the DNC is unlikely to host the convention in Phoenix.