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With Time Running Out, Lawmakers Piece Together Spending Package

ST. PAUL, Minn. (AP) — Minnesota lawmakers began a marathon Saturday to piece together spending plans for a $900 million budget surplus, racing toward a midnight Sunday deadline as legislative leaders tried to finalize a compromise that could satisfy Gov. Mark Dayton.

Leaders had cleared a major hurdle Friday evening in their quest to divvy the budget surplus only to find another obstacle, as Dayton vowed he wouldn't sign a compromise package of more than $250 million in tax cuts unless it's paired with extra funding for a preschool program and other spending he deems critical.

Democratic Senate Majority Leader Tom Bakk and Republican House Speaker Kurt Daudt appeared to have met the governor's requirements. Bakk told reporters Saturday afternoon that he and Daudt were zeroing in on a package that would spend $25 million on a statewide preschool program, $35 million on broadband Internet expansion and $35 million to tackle racial disparities, plus ongoing money in future budget years.

A spokeswoman for Daudt didn't immediately respond to a request for comment. Matt Swenson, the governor's spokesman, said the office was awaiting further details before making any comments.

"I believe the governor will reluctantly sign the bill with that funding at those levels," Bakk said, adding that he thought the funding for broadband expansion was too low.

Negotiators from the House and Senate were still trading offers to fund a transportation package into Saturday evening. Proposals to use surplus dollars, borrow hundreds of millions dollars more, use existing taxes on auto parts sales and authorize a quarter-cent sales tax in the metro area for transit projects were all in the mix, but what combination of those would crack a stalemate was unclear.

Lawmakers had also begun work on a public works construction package, with the Senate proposing a slightly smaller $1.4 billion proposal. That offer was still $600 million more than one sought by the House.

Legislative leaders were holed up for much of Saturday, hammering out agreements on the remaining major issues. The Legislature must adjourn by Monday and cannot pass any bills past midnight Sunday.

Rep. Steve Drazkowski, a Republican from Mazeppa, said Saturday night that lawmakers' attitudes appeared to be shifting as leaders reached agreements, particularly on the tax bill, which he said was most important to him.

"I think people seem to be a lot more optimistic than they were a day or two ago," he said.

(© Copyright 2016 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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