Gov. Tim Pawlenty is cutting $300 million in aid to Minnesota cities, counties and townships as he moves to close a $2.7 billion state budget shortfall.

State health and welfare programs take the next biggest cut. Pawlenty is trimming $236 million in human services spending, and his plan calls for ending the state’s General Assistance Medical Care program on March 1, 2010.

The governor is also deferring state aid to K-12 schools by $1.8 billion in fiscal year 2010, though schools will get their full aid entitlement in the second half of the fiscal year. State higher education funding will be cut by $100 million, and state agencies will have to cut $33 million from their budgets.

Pawlenty is using his power to “unallot” spending after he and Democrats controlling the Legislature couldn’t agree on a budget deal.