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Gov. Mark Dayton issued an extensive list of changes Wednesday he wants from Minnesota lawmakers before signing their tax-cut plan or calling them into special session.

Dayton's demands came as he signed a revised budget that consumes $182 million of a projected $900 million state surplus. The tax cut plan is larger, and his requests for additional spending on higher education and public safety programs would chew up even more of the surplus.

The Democratic governor has been under pressure from interest groups and lawmakers to summon the Legislature back to finish work on a transportation and a public works bonding proposal. But he said that would happen only if his conditions are met, putting any special session in doubt, given the reluctance of legislative leaders to throw the session open to more items.

“We could have this special session next week. We could have it as soon as they’re willing to agree to these requirements," Dayton said. "We could get this all done, and for the sake of those impacted by the tax bill, give everybody the assurance that what they thought was in there is going to be signed into law.”

Asked how Dayton's bid for more spending would go over with his Republican caucus, House Speaker Kurt Daudt was blunt.

Daudt, R-Zimmerman, went on to say that he's willing to be flexible as long as Dayton is equally reasonable in his demands.

"If he's not or he has to have everything the exactly the way he wants it or he is not going to call a special session, it's probably going to be difficult to get there and I think that's really unfortunate," he said.

One scenario the speaker sketched out was to pledge a tax-bill fix to gain Dayton's signature. If they can't come to terms on the rest that's all they'll do in a special session. But Daudt says he's holding out hope for a comprehensive deal.

House Minority Leader Paul Thissen, DFL-Minneapolis, said he is supportive of Dayton's conditions for a special session.

"We should listen to Minnesotans, roll up our sleeves and get to work," Thissen said.

Senate Minority Leader David Hann, R-Eden Prairie, said Dayton should call a special session to pass an infrastructure bill alone.

"However, I cannot agree to your multi-page list of non-negotiable spending demands," Hann said in a letter to Dayton. "This can only be interpreted as an attempt to scuttle the compromises reached by the legislature on major bills passed this session.

Dayton's hesitance to sign the tax bill revolves around glitches he says will hamper financing for the almost-built Vikings stadium in Minneapolis and drop state revenues to levels he considers worrisome. He said he wouldn't sign the legislation unless he gets promises the bill would get fixed; Dayton has until Monday to act on bills.

The tax bill contains new tax credits for low-income people, for college graduates carrying loan debt and for other filers. It also has property tax exemption for a proposed soccer stadium in St. Paul and breaks to lure a wood siding manufacturer to the Iron Range. Dayton said he's generally in favor of the bill but he is pushing to restore a ticket-tax exemption for Minnesota High School League events, estimated at $800,000 a year.

, Minnesota Management and Budget Commissioner Myron Frans and Revenue Commissioner Cynthia Bauerly warn that failure to alter the tax bill could force them to impose a 10 percent tax on stadium suite rentals this July and launch a new lottery game. They said a one-word error in a provision to change charitable gaming taxes would poke a hole in the stadium's financing and cost the state $100 million more than anticipated. Daudt said the error could be as simple as lawmakers writing a letter to spell out what they intended.

Among Dayton's requests for new spending are:

_More than $30 million next year for public college budgets, an amount that climbs in future years.

_Restoration of $20 million in cuts to two of his prized business subsidy programs that reward companies for plant expansions or new hiring.

_An infusion of $22 million to provide extra staffing at state-managed security hospitals.

Dayton also has specific requests for additions to the public-works borrowing bill encompassing tens of millions of dollars. He also said lawmakers would have to rework a transportation package to focus less on projects that road planners say aren't shovel ready and include a funding source _ he doesn't say if he prefers state or local _ for mass transit expansions.

Meanwhile, Dayton did take action on the other big bill lawmakers approved in the legislative session's final hours.

The supplemental budget bill includes three of Dayton’s spending priorities. It provides $25 million to begin statewide, voluntary prekindergarten. There is $35 million to further expand rural broadband and $35 million for initiatives aimed at addressing racial economic disparities.

Dayton said the bill will help 3,700 four-year-olds gain access to quality preschool programs. He said the broadband expansion will help 12,000 households, businesses and community institutions.

Workforce housing, school support staff and water infrastructure also get a boost from the spending bill.

In a separate action, Dayton signed a bill related to life insurance that makes changes to the reserve funds required by insurance companies.

Politics and Government News

Capitol View®

Tim Pugmire

Author

Gov. Mark Dayton signed a spending bill, but took the big tax bill hostage, as he laid out his demands for a special session.

Dayton makes demands on tax bill, special session

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