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DFL Gov. Mark Dayton and Republican House Speaker Kurt Daudt met privately Tuesday to discuss the coming special legislative session, but a deal on three key budget bills remains elusive.

 
Dayton must call lawmakers back to St. Paul to revisit the 

. Despite a $1.9 billion budget surplus, lawmakers will have to agree to new versions of those bills by June 30 to avoid a partial government shutdown.

 
Daudt and Dayton described their talk as "cordial" as they emerged from an afternoon meeting at the governor's residence. Daudt said they're working for a one-day special session, as soon as possible.
 

Budget impasse puts school districts' plans on hold

 for me today," he said. "We're going to go back to talk with some or members, our chairs and staff, research some of those positions and then likely the governor and I will get back together tomorrow to discuss that further."

 
Dayton made a special session necessary last Thursday when he followed through on 

 of an early childhood education and K-12 funding bill, which fell short of his desired funding level and left out his universal preschool proposal. 


 
Two days later, Dayton added to the agenda with 

. He cited numerous objections to funding and policy provisions in the finance bills for agriculture, natural resources and economic development programs.

 
The governor also blamed Senate Democrats for what he called "egregious" anti-environmental language. 

 
"Vetoes are always pretty personal," said state Sen. David Tomassoni, DFL-Chisholm, the chief Senate negotiator for the two bills Dayton vetoed on Saturday.

 
He said he was hoping the governor would sign both and then ask lawmakers to fix his concerns during the special session.

 
Reaching agreement with House Republicans on both bills was difficult and won't get any easier, Tomassoni said, adding that he's concerned now about state workers getting layoff notices and state park reservations coming to a halt if there's no deal by June 30 and a partial government shutdown happens.


 
The chief House negotiator on the jobs and energy bill also has concerns.


 
Rep. Pat Garofalo, R-Farmington, said with three budget bills now on the agenda for a special session, the negotiations should not be limited to the governor and top legislative leaders.


 
"The governor has vetoed a majority of the budget," he said. "I think it is increasingly unlikely that just five leaders will be able to do that. I don't think it's right. There are 201 elected officials, and we all have a vote."

 
Lawmakers are also expected to take up the bonding bill and legacy bill that they failed to pass in time before adjournment.  A tax bill could also be part of the mix.

 
Dayton is proposing a $260 million, one-year income tax cut in exchange for an additional $250 million in education spending, including partial funding for preschool. That's a bigger increase than Dayton was willing to settle for at the end of the regular session.

 
During his weekend news conference, Dayton said he's taken back the previous, lower offer, which was made in hopes of avoiding a special session.

 
"We were $25 million apart. They walked away from it," he said. "Well, if you're working under a deadline and you make an offer and the other side rejects it, then that offer is off the table."

 
House Republicans remain noncommittal to the new proposal.

 
Senate Democrats wouldn't support a tax cut bill in the regular session because House Republicans wouldn't support their approach to transportation funding.

 
But Senate Majority Leader Tom Bakk, who also had a private meeting with Dayton, said he could go along with the governor's latest offer.

 
"I'm going to support the governor in these negotiations as he moves forward with the House," said Bakk, DFL-Cook.

 
"I don't know what the House's appetite for that is. But if the governor can carve off a deal like that with the House, it's nothing I'm going to throw cold water on," he added. "I'm going to work as closely as I can with the governor as we go forward here trying bring this session to resolution."


 
State officials have answered one big question about the special session — its location. With the Capitol building closed for renovations, they've decided that House and Senate sessions will be squeezed into hearing rooms in the nearby State Office Building.

Gov. Mark Dayton's special session priorities

Gov. Dayton's priorities for special session

MPR News reporter Tom Scheck contributed to this story.

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"Cordial" discussions brought no agreements Tuesday on three vetoed budget bills, the governor and Republican speaker said. A deal is needed by June 30 to avoid a partial government shutdown.

Dayton, Daudt talk nice but no deal on Minnesota budget

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