As Lawmakers Battle Budget Deadline, Impact Becomes Clearer

ST. PAUL, Minn. (AP) — As Minnesota lawmakers scrambled Sunday to piece together the state's next budget before a fast-approaching deadline, the impact of the roughly $41.5 billion package on the states' residents started coming into focus.

Farmers affected by a bird flu outbreak could tap into low-interest loans to replace their flocks, college students would have more access to state grants but likely face tuition increases statewide, and getting caught texting while driving repeatedly will carry a steeper fine.

Legislators were expected to work overnight as the 11:59 p.m. Monday deadline draws near. The Legislature is split between two parties, and deadline pressure eroded some grand visions — for example, billions of dollars in tax relief and transportation funding, retooling state agencies and expanding school programs — into incremental changes and tweaks and, in some cases, nothing at all.

The tax package, which Republicans hoped would deliver billions in breaks, stalled out over gas-tax politics over the transportation bill, sinking both.

House Tax Committee Chairman Greg Davids stamped out the chatter, saying he wasn't interested in a tax bill that made only technical changes or authorized cities to do tax-increment financing on building projects.

"We're not going to go around and pick the low-hanging fruit and put together an easy tax bill," he said. "We're not going to have the tax bill have a death by a thousand cuts."

Among the few changes lined up for Minnesota's transportation network, the Legislature plans to dole out $5 million to upgrade railroad crossings and increase the fine for repeat texting-while-driving offenders to $225 — up from $50.

An extra $400 million for public schools would bump up the state's per-pupil funding formula by 2 percent next year and 1.5 percent the following year, as well as increase funding for early learning scholarships. But that could meet the veto pen of Gov. Mark Dayton, who says he's holding out for more money for schools and a half-day preschool program.

The Democratic governor planned to meet with Democratic Senate Majority Leader Tom Bakk and Republican House Speaker Kurt Daudt in separate meetings Sunday afternoon.

The disappointment over education funding for some lawmakers extended to the state's colleges and universities. Both the University of Minnesota and the Minnesota State College and Universities systems are expecting to hike tuition for the next two years, as their funding this time around would fall short of what they said they needed. The size of those potential increases is up in the air.

University of Minnesota President Eric Kaler credited the Legislature for lining up $30 million to boost its medical school, but was critical of what he considered lopsided appropriations that favored the state college system.

"The 53,000 resident students who attend our five campuses deserve much better," Kaler said in a statement.

Meanwhile, a small construction projects bill was taking flight. House Republicans readied a $100 million borrowing plan that would cover extra expenses in the state Capitol renovation, authorize a bird flu laboratory, make contributions to local road and bridge projects and help pay for recovery from past natural disasters. Republicans said it was intentionally small to cover only time-sensitive projects, but House Democrats warned that they might not put up a minimum of nine votes to help it pass.

"You are going to have tough sledding the way this bill is laid out," Democratic Rep. Lyndon Carlson told House Capital Investment Committee Chairman Paul Torkelson.

In the Senate, Capital Investment Committee Chairman LeRoy Stumpf said he was hoping for a borrowing bill of at least $220 million and described even that as "skimpy" by legislative standards.

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