DFL leaders mulling new GOP budget offer

Gov. Pawlenty and Republican legislative leaders have outlined a new budget-balancing proposal aimed at breaking an impasse with Democrats.

Pawlenty emerged from negotiations this afternoon to explain that the GOP proposal would remove a DFL plan to leverage federal health care money through an expansion of Medicaid. In exchange, Republicans would back off of about $114 million in health and human services spending cuts. Democrats would still have to implement the governor's unallotment cuts and shifts from a year ago. Pawlenty described the offer as a pathway forward.

"The point of this offer is to just take all of those points of contention off the table," pawlenty said. "But again, keep in mind we're also taking off the table over $100 million of non unallotment additional HHS cuts. So that's a significant concession or accommodation on our part."

DFL leaders left the governor's office without commenting. They're currently discussing the plan with their House and Senate caucus members.

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