am.mn logoU.S. Rep. Tim Walz had nothing more he needed for his Capitol Hill office, so he returned $2,196 to the U.S. Treasury. Good thing he didn’t need two grand worth of pink office paper, because “supplies of pink paper have been wiped out across North America.” So crows World Net Daily, claiming its readers sent 7 million pink slips (at $29.95 a pop) to Congress to combat health-care and hate-crimes legislation, cheered on by Rep. Michele Bachmann.

Elsewhere in Minnesota news this morning … 

STATE CAPITOL: Doom and gloom. With a new finance report due Wednesday, legislators looked for ways to make up a budget deficit of as much as $7 billion. [Bemidji Pioneer]

CAMPAIGN TRAIL: DFL guv candidates broach sales tax hike. But taxing togs is off limits, says House Speaker Margaret Anderson Kelliher, for one. [Minnesota Public Radio]

THIRD CONGRESSIONAL DISTRICT: Dem love for Paulsen. U.S. Rep. Erik Paulsen is one of Colorado Democrat Rep. Jared Polis’ favorite Republican freshmen in the House of Representatives. (Polis: great name for a politician.) [Politico]

DULUTH: Soldier’s mom sues feds over returned letter marked “Deceased.” Her son was in Iraq, alive, three years ago when she sent the letter. [Duluth News Tribune]

MINNEAPOLIS: Cops probe campaign lit charges. Council Member Robert Lillegren wants to know who put out unsigned flyers attacking him; and stolen piles of his own literature, he says, were seen by Mayor R.T. Rybak in developer Basim Sabri’s car. [Star Tribune]

NEW ULM: Butter fire five years ago recalled. Contrary to reports, molten butter did not flow in the streets when 1 million pounds caught fire at the AMPI plant — or not much, anyway. [New Ulm Journal]