Minn. GOP leaders optimistic in budget deal before deadline

Republican legislative leaders say they remain optimistic about reaching a budget deal with DFL Gov. Mark Dayton by next Monday.

Lawmakers are trying to erase a projected $5 billion budget deficit before their scheduled adjournment on May 23. GOP leaders remain firmly opposed to Dayton's proposed income tax increase on top earners.

Sen. Geoff Michel, R-Edina, said he doesn't think Dayton will threaten a special session or a government shutdown over a tax increase.

"We want to live within our means. We don't want to increase taxes," Michel said. "We don't want to ask more of Minnesota families and Minnesota businesses in this kind of economic climate. We just can't do that. We can't fall further out of step with other states and with other economies."

Senate DFL Minority Leader Tom Bakk said Republicans are underestimating Dayton if they think he will agree to an all-cuts budget. He said the GOP had better be willing to find some middle ground with Dayton if they want to finish by next Monday.

"The governor has been very clear that he is going to be willing to compromise on the spending side, and he's willing to modify his income tax proposal," Bakk said. "But I think they are underestimating this governor if they think he is unwilling to go to a special session."