Gov. Mark Dayton Agrees to Republicans' June 30 Budget, With Conditions

Gov. Mark Dayton on Thursday said he is willing to accept the June 30 budget offer from Republicans, which would bridge a $1.4 billion budget gap.

The difference would be made up by delaying $700 million in payments to Minnesota schools and by issuing $700 million in “tobacco bonds” to cover the remaining gap.

If there is an agreement, it would end the Minnesota government shutdown, which began July 1.

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.

But the acceptance is contingent on three conditions, which are:

• Republicans must take all policy issues off the table

• Republicans must drop their 15-percent across-the-board reduction to the state’s work force

• Republicans must support and pass a $500 million bonding bill

Sen. Al DeKruif (R-District 26) said Thursday morning that he hadn’t had a chance to look through the details of the offer, but said it sounded like it was “most certainly in the right direction,” especially with Dayton dropping his proposed income tax increase.

After hearing initial details, however, he said he was concerned with Dayton’s proposal for a $500 million bonding bill, saying this is not a bonding year.

“Does that mean we’re not going to do one next year?” he said.  “I have a lot of questions about this offer.

GOP spokesman Michael Brodkorb said House Republicans were looking at the governor's offer late Thursday morning, but had no other comment. 

If Republicans agree to Dayton's conditions, a special session to pass a budget—and end the state shutdown—could begin within three days.

Already dealing with delayed state payments for schools, Northfield Superintendent Chris Richardson that pushing payments back for schools is not a solution.

“If they choose to deal with that long-term structural deficit with a short-term shift, that obviously makes the problem worse,” he said. “That simply kicks the can down the road another year but does not solve the problem.”

Rep. Kelby Woodard (R-District 25B) did not immediately return a call seeking comment.