Dayton To Set Stage For 2017 Session In State Of State

Programming Note: The Governor's State Of The State speech will be carried live on WCCO Radio beginning at 7 p.m.

ST. PAUL, Minn. (AP) — Gov. Mark Dayton prepared Monday to lay out his vision for 2017 and beyond, laying out the opening salvo in a brewing battle with Republican legislative majorities over where to bring the state after November's elections.

The Democratic governor had already sketched out some of his agenda ahead of his annual State of the State address, calling for more than $300 million in tax relief that's heavy on credits for low-income families and farmers and urging lawmakers to approve more than $1 billion in a public construction backlog — the Legislature never passed a major infrastructure package last year. Both measures were likely to get top billing in Dayton's speech planned for Monday night as lawmakers dive in to assemble a new, two-year budget with a projected $1.4 billion budget surplus in hand.

But as Dayton enters his final two years in public office pitted against all-out Republican control of the Legislature — the Senate GOP took back that chamber in November, joining a strengthened Republican majority in the House — he's increasingly looking backward to cement his legacy.

Dayton entered office in 2011 tasked with solving a $6 billion budget deficit. After a stalemate with Republican majorities led to a 20-day government shutdown that year, he and Democrats united to control the Capitol in 2013. They raised taxes on the state's wealthiest earners, increased the minimum wage and legalized same-sex marriage.

The state has posted several years of surpluses, and the governor has pointed to that financial stability as a hallmark of his six years in office, insisting he'll safeguard against a return to painful budget shortfalls.

Republicans will no doubt push Dayton for more in tax cuts. Their budget work won't start in earnest until late February, after budget officials give a final readout of the state's economy.

But GOP lawmakers were also awaiting Dayton's promised plans Monday for restructuring a fragile individual health insurance market this year. Republicans have sought those broader health care law changes while considering how to offset massive premium hikes for an estimated 125,000 shoppers who don't get federal subsidies. Dayton has said those major reforms should wait until after they've helped address the sticker shock.

At least in venue, Dayton's speech will be a return to normal. After moving offsite for last year's State of the State amid ongoing renovations at the Capitol, he and all 201 lawmakers will gather on the House floor.

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