The Legislative session ended earlier this month without a negotiated budget agreement, and Republican Gov. Tim Pawlenty plans to go it alone with his emergency authority to cut spending beginning July 1.
On Thursday, Pawlenty said he has not decided where he will make the cuts, but that they'll likely affect higher education, human services and local government aide.
"There are some small cities and towns we want to try to accommodate," Pawlenty said Thursday on Minnesota Public Radio's Morning Edition. "So those are things we will be looking at."
Pawlenty's preparing to reduce spending by at least $1 billion without the Legislature's consent.
He said if the economy rebounds and there is not a projected deficit, the reduced unallotments may be able to be amended or modified. He also said most of the cuts will likely come in 2010, the second year of the biennium.
"We do want to try to make as many of the decision effective in the second year of the budget cycle so that if the Legislature, if they don't like some of the decisions or want to modify them, can come back early next year and address that if they choose," he said.
The second year of the biennium is also an election year. Pawlenty said he plans to announce whether he'll be running for a third term later this summer.