Still no budget deal as deadline approaches

Kurt Daudt, Joyce Peppin, Jim Knoblauch
House Speaker Kurt Daudt, right, is accompanied by Majority Leader Joyce Peppin, left, and House Ways and Means Chairman Jim Knoblauch as they arrived, Wednesday, May 13, 2015, at the governor's mansion in St. Paul, where negotiations continued on the state's budget.
Jim Mone | AP

With four days until the deadline to adjourn, budget talks broke off Thursday before the 10 p.m. news even started. Legislative leaders, including Republican House Speaker Kurt Daudt, were mum as they left the governor's residence.

The negotiators did cut a deal on two smaller budget items. They agreed to spend $111 million more on public safety and courts. And they also agreed to spend $166 million more on higher education.

But the big budget pieces, including K-12 schools, and health and human services are still unresolved.

Gov. Mark Dayton and legislative leaders are scheduled to resume negotiations Friday morning.

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DFL Senate Majority Leader Tom Bakk said they haven't started talking about taxes or transportation.

"We've got a pretty tight timeline here to get through all the budget targets in the conference committees," he said. "Once all those targets are established, if the Republicans and the governor want to talk about transportation or taxes, the bills that are not must-pass bills, I'm absolutely willing to engage in that conversation."

Bakk said they're not must-pass because the budget will be balanced even if they don't pass. He said the Legislature can still pass all of the spending bills necessary to keep state government functioning before the Monday deadline, but that Dayton may have to call a special session to pass a tax bill and a transportation bill.

Bakk said there's little time to waste.

"People get to a point where we say up north that you got a fish or cut bait. You've got to do something here," he said.

Bakk has been the only one discussing specifics about the budget talks. Daudt and Dayton have effectively taken a vow of silence. Their private negotiations have left reporters and many lawmakers scrounging for any bit of information about the budget talks.

On the Senate floor, DFL Assistant Senate Majority Leader Katie Sieben of Newport told inquiring lawmakers to check social media for updates.

"Like many other members, I'm watching Twitter to see what other developments are occurring, and I would encourage you to do the same," she said.

Other lawmakers are more coy about the budget. Republican Rep. Dennis McNamara of Hastings wasn't prepared to say whether the Environment and Agriculture budget committee was given a spending target.

"I understand from what you guys are saying that people are saying that's true. I'm not here to deny it," he said.

McNamara did not disclose what the target is. But he said one reason his bill isn't ready for a vote has to do with a priority of Dayton's. Negotiations over the governor's plan to require farmers to plant 50-foot grass strips between crops and bodies of water are still ongoing, and the language may end up in McNamara's bill.

McNamara said he isn't worried about passing his bill before Monday's deadline.

"This isn't a lot different from normal, would you say? What are we, 96 hours from finish? Legislatively that's an eternity," he said.

Others, like Republican House Tax Committee Chair Greg Davids, are watching the clock closely.

"I would really like to see the white smoke to come out of the chimney on Summit Avenue so that we can have our numbers and get this job done," he said.

Davids said he thinks he and his Senate counterparts could quickly wrap up a tax bill once the leaders agree on the size of a tax cut. But he said drafting and printing the bill could take one full day after they agree.

The deadline pressure is more intense where major differences remain. For example, DFL Sen. Ron Latz of St. Louis Park and Republican Rep. Tony Cornish of Vernon Center disagree on several policy items in the public safety budget bill. Latz said policy isn't a priority. Cornish said that's unreasonable.

"We looked back 50 years and we can't find an omnibus bill without policy."

The conference committee working on the higher education bill has to decide how the new money will be split between the University of Minnesota and the state colleges and universities. Legislative leaders said there isn't enough funding to freeze tuition at either system.

DFL Senate Higher Education Chair Terri Bonoff of Minnetonka said she's looking to divide the pie equally.

"I'm going to do my best to come away from this session with strong support for both of those systems."

House Republicans, however, put a priority on Minnesota State Colleges and Universities over the U in their budget.