Governor Pawlenty made two stops on the Iron Range earlier today.. to talk to community leaders about the economy, the states budget, and the future of several projects there.

Chris Buckley has the story from Hibbing.

Governor Pawlenty addressed the states budget issues and stressed the need to create a more business friendly climate.

In regards to concerns about funding for Essar Steel Minnesota The Governor said that project is moving forward as planned and at this point, they don't need any help from the state.

"We appreciate Senator Bakk's concern but it's not helpful if they're not based on facts and warranted by the circumstances, and Essar reports back that they're not in need of our assistance in the private equity markets at the moment they're moving ahead with their plans and candidly Senator Bakk's airing out these concerns publicly is not helpful."

Officials with Essar say the project is moving forward as planned and thanked local legislators and business leaders for their support.

"We're on schedule to meet deadlines for commissioning the pellet plant in 2011 and the steel mill in 2013 and 2014, we're getting a great workforce on site."

In regard to pending legislation that would in effect kill the Polymet project underway in Hoyt Lakes, the Governor said the states current laws on environmental protection are adequate.

"I think there's some legislators that don't like the project, so they're adding layers of regulation and trying to kill it. I think the project should be reviewed on its merits in a rational way and I think the current laws do that."

And the Governor has revised the budget proposal he outlined in January.

the new proposal would restore funding for higher education due to more federal funds from the stimulus package.

Governor Pawlenty also met with community leaders in Grand Rapids.