DONE DEAL: Gov. Mark Dayton, GOP Agree on Budget to End Minnesota Shutdown

Minnesota’s legislators are heading back to work.

Gov. Mark Dayton and state Republican legislative leaders Thursday afternoon agreed on a preliminary budget and took the first steps toward ending the government shutdown.

During a three-hour meeting in the governor’s office, the parties agreed the the June 30 budget proposal from Republicans that would not raise taxes, but would borrow money to balance the budget. The deal will raise $1.4 billion by issuing state bonds against future tobacco revenue ($700 million) and shifting K-12 education aid from 70/30 to 60/40 ($700 million).

Districts traditionally receive the majority of its funding during the current school year and receive the remaining funds a few months after the fiscal year ends and enrollment numbers, which much of the funding is based on, are confirmed. A few years ago, the Legislature started shifting school funding by moving from 90/10, which it had been for years, to the 70/30 formula.

In a tense meeting with reporters at the Capitol following Thursday's meeting, Dayton said he expects to call a special session for legislators and to pass a budget “very soon. Within days.”

Dayton said he expected he and Republican leadership would work late into the night and through the weekend.

“This is an agreement that is difficult for both sides,” said Senate Majority Leader Amy Koch (R-Buffalo). “There’s been some good discussions and some coming together on agreements for reforms.”

House Speaker Kurt Zellers (R-Maple Grove) agreed reaching a deal—as well as the shutdown—has been difficult.

“We are in an imperfect situation,” Zellers said. But in the end, “we’re focused on getting the lights back on and getting the government up and running again.”

Despite the agreement, Dayton reiterated his disappointment with the deal which he announced Thursday morning.

“I’m disappointed I wasn’t able to pursuade a legislative majority of the wisdom of my approach to raise taxes on the wealthiest Minnesotans,” Dayton said. “In the absence of that,
however, this is an agreement today.”

Said Zellers: “Today was about making a deal that we’re disappointed in, but that’s done. None of us got exactly what we wanted. But we have a deal that will be done, a budget that will be balanced and a state that will be back to work.”

As part of the agreement, Republicans agreed to , including taking policy issues off the board and passing a $500 million bonding bill.

Koch said she expected the budget to pass the special session.

“We’re working with our caucus. We need to hammer out final details in these bills but we’re confident,” Koch said. “We’re focused solely on making sure these bills are processed as quickly as possible.”