UPDATE: GOP Accepts Dayton Proposal

Update: 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 to a June 30 Republican budget proposal 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 K12 education aid from 70/30 to 60/40 ($700 million).

In a tense meeting with reporters at the Capitol following the 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 three of Dayton’s conditions. <<LInk to your previous articles>>

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.”

Burnsville's local legislators had not responded to requests for comment as of press time.

11 a.m. today: After 14 days of gridlock, Gov. Mark Dayton has “reluctantly" agreed to the last Republican budget offer made on June 30 with conditions—a move that could end the state shutdown if Republicans agree.

In a meeting at the Humphrey School of Public Affairs, Dayton said that he said that in his 36 years in government, he had never seen such a breakdown of the democratic process, largely due to the implacability of his opponents. 

"I've never experienced a group of people who view intractability as a strength and virtue and compromise as a bad word," Dayton said.

Dayton said his feelings about the GOP's last have not changed.  

"My reservations are as strong today as they were two weeks ago. This is the only viable option available," Dayton said.

Dayton said that some Republican legislators told him privately that some of their colleagues believed a shutdown would prove how irrelevant the government is. 

"I think it's done the opposite. I've talked to lot's a citizens who say they don't even care how, they just want it resolved," Dayton said. "I care — that's my job. But this is the best we can do right now." 

That offer generates $700 million dollars through further school aid shifts, and issues $700 million in “tobacco bonds” to cover the rest of the $1.4 billion gap between the governor and state Republicans.

The governor sent a letter to Senate Majority Leader Amy Koch and Speaker of the House Kurt Zellers on Thursday that said that while he doesn't necessarily agree with the method of resolving the budget impasse, he does think it's necessary to end the shutdown as soon as possible.

"I am willing to agree to something I do not agree with—your proposal—to spare our citizens and our state from further damage," Dayton wrote.

However, Dayton added three conditions to his agreement that will ultimately determine if the shutdown ends.

First, he said Republicans must abide by their public statements that they will take all policy issues off the table at this time. Second, they must drop a 15 percent, across-the-board reduction to employees in all agencies, regardless of their funding source. Third, that after all the budget issues have been resolved in a special session, Republicans must support and pass a bonding bill of at least $500 million next session.

If Republicans agree, a special session to resolve the budget controversy could begin within the next three days. 

To see this Dayton's speech at the Humphrey School of Public Affairs, click on this link. Patch has also attached a copy of Dayton's letter to this article.

Burnsville Patch has contacted local legislators. Once they have responded, this article will be updated.