Dayton to release supplemental budget proposal Tuesday

Gov. Mark Dayton will release his plan this week for spending the state's $900 million budget surplus.

Dayton has said the supplemental budget proposal he'll roll out Tuesday includes some modest spending increases and middle-income tax cuts. He's already suggested that his spending recommendations will include initiatives aimed at the state's racial economic disparities.

But Dayton said his plan for assistance is just the start of an effort to gather many more ideas.

"We have some ideas. I'm going to advance those. But it's really going to be a process that will involve people. How do we reduce these disparities, and how do we give everybody a fair opportunity in Minnesota?" he said. "I think the innovation will come from people who are really living this challenge every day."

On taxes, Dayton has said his proposal will include an increase in the child care credit and further state conformity to the federal tax code.

During his state of the state last week, he said that his top priority for the session is protecting the fiscal integrity of state government. He warned that the permanent tax cuts favored by Republicans could put the budget at risk.