ST. PAUL, Minn. (AP) - Republican Gov. Tim Pawlenty and the Democrats who run the Minnesota Legislature said Tuesday that jobs and health care will get top billing in the 2010 session.

They met privately for the first time since May, when Pawlenty rejected legislative proposals to raise taxes and used his executive powers to erase a deficit without lawmakers' approval. On Tuesday they shared pancakes and bacon at the governor's residence in St. Paul.

The breakfast was part of the ritual of gearing up for the legislative session that begins Feb. 4. A critical budget forecast due Dec. 2 will determine whether state leaders will spend the session looking at short-term or long-range financial problems.

Large areas of disagreement remain, including the size of the budget woes. Democrats predict a deficit as large as $7 billion starting in mid-2011, while Pawlenty says no shortfall will develop if spending is controlled.

Both sides said efforts to create jobs in 2010 will include a package of state-backed construction projects and tax incentives to encourage investors and entrepreneurs.

Senate Majority Leader Larry Pogemiller said they will also try to soften the elimination of health care coverage for more than 30,000 low-income adults. Pawlenty cut General Assistance Medical Care starting in March. He said he doesn't intend to reinstate the program, but is working on "relief" and will outline his plans soon.

Pawlenty's proposal to let out-of-state insurers sell health coverage in Minnesota got little interest from House Speaker Margaret Anderson Kelliher.

"People are less healthy in these states. Why would we in Minnesota, where we have good health outcomes, better ways of doing things, look to states with lower quality?" said Kelliher, one of 11 Democrats running for governor.

Pawlenty is not seeking a third term and is seen as a possible 2012 presidential candidate.

Pogemiller is pushing for more spending cuts in 2010. Pawlenty sounded open to the idea, but they have yet to air details.

(Copyright 2009 by The Associated Press. All Rights Reserved.)