ST. PAUL (WCCO) — Gov. Mark Dayton “with great reluctance” has dropped his objections to language that would, he says, decimate the State Auditor’s office, but said that other issues still need to be resolved before a special session could happen.

The announcement comes after lawmakers put plans for a special session on hold while trying to reach a pact on the authority of the state auditor, along with several other bills. House Speaker Kurt Daudt had said the GOP would not budge on a law that will eventually let counties hire private auditors for financial reviews now done by the state auditor.

“Rather than subject 9,500 state employees to continued uncertainties over their employment or precipitate severe disruptions in essential public services after July 1, I will, with great reluctance, temporarily suspend my efforts to resolve this dispute,” Dayton said.

In a letter to House Majority Leader Kurt Daudt, Dayton said, “As I should have learned from your Caucus’ intransigence in other matters, such as an equitable distribution of early learning funds, you remain unwilling to accept a reasonable compromise between our differences.”

Because lawmakers couldn’t agree on a budget for the state in the scheduled legislative session, a special session was required to pass several funding bills, including a hotly-contested $17 billion education package.

Dayton said Monday that he hoped a special session would be possible later this week.

There are still up to seven issues that he remains at odds with Republican leaders over, though. Those included funding for programs that help Minnesotans with disabilities to find employment and help those with mental illnesses avoid homelessness.