Recap: A week of negotiation ends in stalemate

Shuttered State Capitol
Barriers were in place on the road in front of the Minnesota State Capitol Friday, July 1, 2011 in St. Paul, Minn., after negotiations over the state budget between Republican lawmakers and Democratic Gov. Mark Dayton broke down and the government shutdown at midnight.
AP Photo/Jim Mone

About 22,000 state employees start off the holiday weekend unemployed. That comes after a week of action in the courts and state Capitol as judges prepared for a government shutdown and lawmakers struggled to avert it.

On Monday, the two sides were firmly dug in.

DFL Gov. Mark Dayton wanted to raise taxes on the wealthiest Minnesotans to balance the budget. GOP legislators said the state should instead make budget cuts. Each side said the other's proposal was a non-starter.

Still, they went in and out of meetings, saying little of consequence. Dayton said he and GOP legislators had agreed not to talk about what was going on behind closed doors.

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"We've agreed to a 'cone of silence' because it's conducive to our working things out because I remain committed to find a fair and balanced budget that will benefit the state of Minnesota and avoid a shutdown and we'll see if that's possible."

Republican House Speaker Kurt Zellers said the self-imposed gag rule eased the pressure on negotiations.

"In order to make sure that we can have frank and honest conversations in the room, we've agreed to the cone of silence in there that we not only feel comfortable that things won't be leaked out or misinterpreted."

From then on they would only speak in general terms like describe the negotiations.

As silence settled on the capitol, action ramped up in the courts. Ramsey County Judge Kathleen Gearin ruled Wednesday that core government services like state prisons, subsidized health insurance, unemployment benefits and nursing homes will continue even if government shuts down.

Under Gearin's plan 40 state agencies and boards would be mothballed. Subsidized daycare and childcare payments would stop.

On balance, the ruling averted many of what was feared to be the worst consequences of a shutdown.

"She could have gone for an extremely draconian model, but I think she went for somewhere in the middle," said Jeff Spartz, executive director of the Association of Minnesota Counties.

Meanwhile Minnesotans packed state government offices to obtain last-minute sevices, such as at the Driver and Vehicle Services office in St Paul. Manager Katie Orth's workers were swamped.

"We have people coming in, the driver's license is expiring in August and they're coming in early. People's tabs that are expiring in August or, you know, September, we've seen those people come in too. They're just worried."

Anxiety was also rising among state employees. Department of Natural Resources employee Mark Fischer and his wife began cutting back, buying less meat at the grocery store and clipping more coupons.

"Not going out at all. Any entertainment, we curbed that for the time being to save that money."

On Thursday, state employees prepared offices for a shutdown and left for the day with cardboard boxes filled plants and pictures they kept at work.

Across Minnesota, DNR workers asked vacationers to pack up and leave the state's parks.

*Meanwhile,* Republicans decided to send the governor a "lights on" bill late Thursday to keep state government open.

Senate majority leader Amy Koch said Republicans felt the next move belonged to the governor.

"And then we offered that to the governor and that was in our last meeting. He responded. He did not call us back in. He just sent a letter with an offer that the top tier tax was back on the table," Koch said on MPR's Midday Friday morning.

At about 10 p.m., Dayton said the Republicans' offer was a ploy designed to shift the blame to Democrats.

"I take it as a publicity stunt. Try to shift the blame from their responsibiltiy to accept one of these offers made over the last few days. They don't want to raise revenues on anybody, and I believe the wealthiest Minnesotans can afford to pay more in taxes."

State government shut down at midnight.

On Friday, groups that weren't included in the list to be funded during the shutdown petitioned before a special master. Retired Supreme Court Chief Justice Kathleen Blatz was appointed to hear their appeals.

Theresa Dolata told Blatz said she depended on services from the non-profit Vail Place in Minneapolis for help with her mental illness. Vail Place is partially supported by state funds that are now on hold.

"Without Vail Place quite honestly I wouldn't be alive today."

Dolata and dozens of others made pleas for nonprofits to be spared the effects of the shutdown. Blatz is taking their requests under consideration. Her decisions may be important, if the shutdown drags on.

However, Dayton said yesterday there would be no budget negotiations this weekend.