SHUTDOWN TO END WITHIN DAYS

Minnesota’s legislators are heading back to work.

Gov. Mark Dayton and state Republican legislative leaders Thursday afternoon agreed on a preliminary budget and took the first steps toward ending the government shutdown.

During a three-hour meeting in the governor’s office, the parties agreed the June 30 budget proposal from Republicans that would not raise taxes, but would borrow money to balance the budget. The deal will raise $1.4 billion by issuing state bonds against future tobacco revenue ($700 million) and shifting K-12 education aid from a 70/30 formula to 60/40 ($700 million).

In a tense meeting with reporters at the Capitol following Thursday's meeting, Dayton said he expects to call a special session for legislators and to pass a budget “very soon. Within days.”

Dayton said he expected he and Republican leadership would work late into the night and through the weekend.

“This is an agreement that is difficult for both sides,” said Senate Majority Leader Amy Koch (R-Buffalo). “There’s been some good discussions and some coming together on agreements for reforms.”

House Speaker Kurt Zellers (R-Maple Grove) agreed reaching a deal—as well as the shutdown—has been difficult.

“We are in an imperfect situation,” Zellers said. But in the end, “we’re focused on getting the lights back on and getting the government up and running again.”

Despite the agreement, Dayton reiterated his disappointment with the deal that he announced Thursday morning.

“I’m disappointed I wasn’t able to persuade a legislative majority of the wisdom of my approach to raise taxes on the wealthiest Minnesotans,” Dayton said. “In the absence of that, 
however, this is an agreement today.”

Zellers agreed: “Today was about making a deal that we’re disappointed in, but that’s done. None of us got exactly what we wanted. But we have a deal that will be done, a budget that will be balanced and a state that will be back to work.”

As part of the agreement, Republicans agreed to , including taking policy issues off the board and passing a $500 million bonding bill.

 (DFL-Minnetonka) told Patch she was also disappointed with this plan. She is against the further school aid shift and the $1.9 billion in additional borrowing that Dayton has agreed to with this offer. 

“We can’t be borrowing money to pay our bills. I think that’s irresponsible,” she said. "This just continues to put our state in a fiscally unsound state. I’m opposed to short-term measures to solve long-term problems." 

(R-Eden Prairie/Minnetonka) said that because details of the compromise remain in negotiation, he is unable to offer full analysis of this latest development. 

"The people of Minnesota asked us to compromise and we did," Stensrud wrote in an email to his constituents Friday. "The governor backed away from his proposal to raise taxes and the Legislature conceded some reform and policy measures." 

Koch said she expected the budget to pass the special session.

“We’re working with our caucus. We need to hammer out final details in these bills but we’re confident,” Koch said. “We’re focused solely on making sure these bills are processed as quickly as possible.”

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Patch is currently seeking comment from (R-Eden Prairie/Minnetonka) and  (DFL-Minnetonka). We will update this story as more details become available. 

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Read the latest developments on the government shutdown by following the Minnetonka Patch facebook page or by clicking on one of these recent stories:

July 15:  

July 12:  VIDEO: Day 12 of Government Shutdown

July 7: Minnetonka's Gunyou on 'Third Way' Committee Experience, Proposal

July 7: Committee Releases ‘Third Way’ Solution: Income Taxes for Everyone

July 7: State of Shutdown: Impact on City’s ‘Most Vulnerable’

July 6: 

July 5: Minnetonka City Manager Tapped to Solve Stalemate, End Shutdown

July 5: 

July 5: 

July 1: State of Shutdown: Impact on City of Minnetonka

July 1: State of Shutdown: Impact on Locals

July 1: State of Shutdown: Impact on Minnetonka Nonprofits

July 1: State of Shutdown: Impact on Minnetonka Schools

June 29: MnDOT to City: 'Work Must Stop for Shutdown'

June 23: State Shutdown Would Freeze DNR, Close State Parks

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Click here for Patch coverage of the Minnesota shutdown on Huffington Post.