As Democrats prepare to take over the Legislature next month they'll be facing a pretty steep fiscal hill. Minnesota faces a budget shortfall of $1.1 billion for the next two years. State finance officials released an updated forecast just a couple of hours ago, so that Democratic Governor Mark Dayton can start shaping a two-year budget proposal. Despite the overall deficit forecast, they say the state will be able to repay $1.3 billion in delayed school aid. State officials have said the forecast could be quickly obsolete if federal debt talks don't head off the so-called fiscal cliff. Minnesota comes under full Democratic control next year for the first time since 1991, giving Democrats latitude to raise taxes after years of Republican resistance.