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DENVER—State officials, facing a legal challenge, have agreed to significantly improve the computer system used to process applications and renewals for food stamps and medical aid.

Gov. John Hickenlooper announced the agreement Friday with advocates for the poor to greatly boost the timeliness of the Colorado Benefits Management System. Advocates last year filed a request to hold the state in contempt of court for failing to comply with a 2007 settlement.

Colorado’s neediest have faced long delays for food stamps and medical care. State officials have cited ongoing problems with the troubled computer system and a surge in demand because of the bad economy.

Hickenlooper says he’s working with various state agencies on solutions.

The agreement says the state must reach 95 percent compliance by June 30, 2013.

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