With the state facing a projected $1.2 billion budget deficit, Gov. Tim Pawlenty let the budget ax fall Monday when he released his plans for cuts to state spending. The steepest cuts were taken from local government state aid and health and human services programs, which made up the $1.2 billion needed to balance the budget. Pawlenty’s plan included $46 million in higher education cuts — $36 million to the University of Minnesota and $10 million to the MnSCU system — an amount University Chief Financial Officer Richard Pfutzenreuter said is disappointing but expected.