Politics & Government

MN Shutdown Roundup: Gov. Dayton Accepts GOP Offer, With Conditions

A new offer emerges Thursday.

Update July 14, 11:15 a.m.: 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.

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.

It also equalizes reductions between the University of Minnesota and MNSCU, restores funding to the Dept. of Human Rights and Trade Office, and increases the per student K-12 formula by $50 to cover additonal borrowing costs. Dayton also asks for a bonding bill of not less than $500 million next session.

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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.

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

 

Update July 12, 10:45 p.m.: Gov. Mark Dayton spent Tuesday participating in a roundtable discussion hosted by officials, teachers, parents and administrators of St. Cloud Independent School District 742.

The subject at hand was the impact of the proposed GOP budget cuts to special-education funding.  

“The current legislative proposal is about $48 million short with special-education dollars and we really need to find a way to restore those dollars,” Education Commissioner Brenda Cassellius told the crowd. “We really don’t want to further deplete an already-depleted resource.”

Dayton told the standing-room-only crowd that, “We’re going to do what we can, here in Minnesota, with what’s available. So the 129,000 school children in Minnesota who are in special education programs have a huge amount at stake in these budget deliberations.”

Dayton reiterated that the purpose for his participation in the roundtable was to communicate to Minnesotans what is at stake for them in the budget talks.

“It is important that all of our voices are heard so we can come to a balanced, reasonable compromise as quickly as possible,” Dayton said.

Among those in attendance at St. Cloud’s Apollo High School were GOP legislators Rep. Steve Gottwalt (District 15A), Sen. David Brown (District 15), Rep. Sondra Erickson (District 16A) and DFL representative Larry Hosch (District 14B).

All of them refused Dayton’s invitation to join him around the table.

Meanwhile, at the State Capitol

GOP leaders spent much of Tuesday reiterating their call for a lights-on bill that would temporarily bring back to work all state employees laid off July 1.

Furthermore, GOP leaders presented six bills that they said could be signed—and thus permanently restore 16,000 state jobs—if only the governor would call a special session to bring legislators back to work.    

“We are within less than one-half of one percent on these funding bills to bring back 16,000 employees,” House Majority Leader Matt Dean (R-District 52B) explained. “That is to say we are 99.5 percent in agreement with the governor” on these six bills.

Dean continued: “Throughout the session, the governor has always said, ‘I will not agree to anything without agreeing to everything,’ and (the shutdown) is what you get when you have that mindset.”

House Speak Kurt Zellers simplified the GOP policy position on education after explaining how close the GOP and governor are on the budget amount.

“We think teachers and principals and superintendents should be evaluated so our kids are getting the best possible education and instruction. That makes sense.”

Zellers added: “You can see how close we are on things right here. So why hold the absolutely perfect hostage for the pretty darn good?”

In fact, the Public Safety bill—which is responsible for funding 6,375 jobs—is one of the biggest points of frustration for the GOP because the party and the governor are agreed on the budget and the policy.

Still, Dayton holds to the promise that he will not sign any bills until he has a complete budget in place.

When asked why the GOP has yet to bring a counter-offer to Dayton, despite the governor’s assurance that he would meet under those circumstances, Zellers rejected the notion out of hand.  

“If repackaging another tax increase or somebody else’s tax increase is his suggestion at a counter-offer, we continue to wait for him as well.”  

Senate Majority Leader Amy Koch concluded the news conference with words of frustration.

“This seems so obvious when you lay it out for people. I would argue that we’re even closer on paper than what these numbers represent,” Koch said. “The (governor’s) arguments that ‘I won’t sign anything unless I sign everything’ or ‘We are one Minnesota’ just don’t wash anymore.”

“It’s interesting that (the GOP) is being accused of intransigence, because I would argue that this is intransigence,” Koch concluded.

Update July 11, 4:26 p.m.: Gov. Mark Dayton is embarking on a statewide journey Tuesday morning to explain his side of the Minnesota budget debate that has resulted in a state government shutdown.

In a whirlwind tour that begins in St. Cloud on Tuesday, the governor will also visit Rochester, Winona, Albert Lea and Austin over the next two days. Dayton has preliminary plans to fly to Moorhead later in the week.

“I’ll be traveling throughout Minnesota to talk with people about why we’re going through (the shutdown),” Dayton told reporters assembled on the steps of the State Capitol. “The people of Minnesota overwhelmingly want us to compromise. I am willing to consider other possibilities; other reasonable alternatives.”

Among the possible compromises Dayton would consider is lowering and broadening the sales tax, increasing the tax on cigarettes and alcohol and ending certain tax breaks. The governor’s preferred method of closing the $1.4 billion gap between proposed budgets remains an increased income tax on Minnesota’s 7,700 wealthiest residents.

The governor also released a budget message “to all Minnesotans” on YouTube.

In a news conference after Dayton’s announcement, GOP leaders renewed their call for a lights-on bill.

Sen. Amy Koch (R-Buffalo) also said a GOP counteroffer is “in the works.” She did not expand on the details of the budget offer or say when it would be presented to the governor.

Apart from the temporary-funding bill, the GOP has yet to make a counteroffer since the beginning of the government shutdown July 1.   

Despite whispers of a counteroffer, it appears GOP leaders and Dayton are still miles away from a deal.

“Any talk of increased taxes is generally off the table,” Assistant Majority Leader Sen. David Senjem (R-Rochester) told reporters outside the Capitol. “We compromised in the room (June 30). We felt we compromised enough.”

 

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