Pawlenty makes new offer to balance budget with more cuts

Gov. Tim Pawlenty and DFL Legislative leaders resumed negotiations today to try to erase a $4.6 billion deficit.

They met for about an hour in the governor's office at the State Capitol. Senate Majority Leader Larry Pogemiller, DFL-Minneapolis, said Pawlenty was preparing an offer that hinges on another $1.2 billion in budget cuts. Pogemiller said the Republican governor also agreed to a $1.8 billion shift in education payments and had backed off his $1 billion appropriation bond plan. He said Pawlenty also restated his opposition to any tax increases.

"We of course view that as a negative, because we don't see how you can stabilize the budget without permanent revenue," Pogemiller said.

Details of the governor's offer won't be available until later in the day, but House Speaker Margaret Anderson Kelliher, DFL-Minneapolis, said some of the additional spending reductions would likely come from state aid to cities and counties, higher education and hospitals.

Pawlenty spokesman Brian McClung said the governor remains poised to use line-item vetoes and his unallotment authority to end the session on time, but his preference is to negotiate an agreement.

"But that will take the Democrats in the Legislature showing a willingness to compromise as the governor has shown a willingness to compromise throughout this process," McClung said.

The Legislature must adjourn by midnight Monday.

Political Coverage Powered by You

Your gift today creates a more connected Minnesota. MPR News is your trusted resource for election coverage, reporting and breaking news. With your support, MPR News brings accessible, courageous journalism and authentic conversation to everyone - free of paywalls and barriers. Your gift makes a difference.