Budget Differences Remain

In an attempt to reach a global budget agreement, Governor Mark Dayton offered Republican leaders a revised budget proposal that moved closer to their proposed $1 billion dollars in tax relief. According to administration officials, Dayton proposed $400 million dollars in tax reductions, which reflects $208 million dollars above his original plan. In addition, Dayton would reduce his spending proposals by $624 million dollars.

Republican leaders acknowledge the Governor's effort in presenting budget targets for each of the budget areas, but expressed disappointment in license tab fee increases. Senate Majority Leader Paul Gazelka said it was an important step that Governor Dayton has begun to move towards greater tax relief and is working towards global targets.

Later in the day, Republican leaders offered Governor Dayton a revised proposal that set tax relief at $875 million. They also proposed additional transportation funding of $372 million dollars without any additional license tab fees. Furthermore, the Republicans would reduce health and human services spending by $400 million dollars and state agency budgets by $20 million dollars.