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St. Paul, Minn. — Gov. Pawlenty and House Republicans never wavered on their no-new-taxes pledge. Now, their vision is almost reality. Legislative leaders made a deal on a two-year budget that's nearly $300 million larger than the governor's February proposal. The package makes cuts to programs, uses spending shifts and one time money to eliminate the projected deficit. It would also increase fees in several areas. Pawlenty praised the budget and the significant policy changes it contains.
"You will see historic progress in many categories; things that didn't get done during the last 10 years are now getting done or have a very good chance or prospect of getting done as these bills get finished," he said.
Pawlenty says leaders are still negotiating policy issues, including his proposals for a stateworker pay freeze and creation of several tax free zones across the state.
The agreement also includes a bonding bill of $175 million. The governor says they're still negotiating which projects the state would borrow for. The list could include projects vetoed by Gov. Ventura last year.
Republican House Speaker Steve Sviggum says he has set a Sunday evening deadline for most conference committees to finish their work.
"When you look at the entire package you say no tax increases, we take care of those core government functions, bring forward reform and change. This is a pretty wonderful day," he said.
The agreement does not include the GOP proposal to install 2,000 slot machines at the Canterbury Park racetrack in Shakopee.
You will see historic progress in many categories; things that didn't get done during the last 10 years are now getting done or have a very good chance or prospect of getting done as these bills get finished.
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Senate DFLers say they conceded defeat on their plan to raise taxes after Pawlenty said he would shut down state government rather than approve a tax hike. Senate Majority Leader John Hottinger says his caucus will not vote for the agreement. He says they'll only provide the minimum votes to pass them into law.
"We are not in agreement in the direction that we're going, but we think it's our obligation to work through the final details of a budget we will not support. We continue to feel that 31 Republicans will have to vote for this budget before it passes in the Senate," he said.
Several groups say the agreement will harm Minnesota's quality of life. Advocates for the poor held a mock funeral on the Capitol lawn on Saturday. They placed about 100 tombstones for the programs that will be cut.
Rep. Nora Slawik, DFL-Maplewood, says Senate DFLers should have stuck to their principals.
"The Senate's strategy is disappointing. We should have held out longer, we should have fought harder. This is about the future of Minnesota and we let this go before the end of session? I think that was wrong," she said.
It's unlikely that lawmakers will finish their work before the Monday night deadline. The governor says he'll call a special session this week and hopes the Legislature adjourns for the year before Friday.
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