Two weeks after shutting down the state government, Minnesota Governor Mark Dayton and Republican lawmakers have reached an agreement to end the budget impasse.
The two sides are still working out the details but expect to pass a budget within “very few days,” Dayton told Bloomberg.
The deal was reached today after Dayton caved to Republican demands not to raise taxes to close a $5 billion budget deficit.
He agreed to a GOP proposal that would close the gap by deferring $700 million in payments to schools and issue $700 million in bonds linked to a state settlement with tobacco companies.
In exchange, Dayton demanded that the deal include a $500 million bond package for new building construction. He also asked Republicans to drop demands for a 15% reduction of state employees and strip the spending bill of social policy changes, including restricting abortion and requiring voters to show photo ID.
The Minneapolis Star Tribune reports that Republican leaders expect to have the votes to pass the deal when the legislature meets in a special session, possibly within the next three days.
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