End in Sight? Gov. Mark Dayton Agrees to Republican Budget Offer With Conditions

In a surprise announcement that shocked his audience, Gov. Mark Dayton said this morning that he is now prepared to accept—with a few provisos—the Republicans’ June 30 budget proposal.

If that offer is still on the table, Dayton said, he will call for a special session within three days to bring legislators back and end the state government shutdown.

Speaking before alumni at the University of Minnesota’s Hubert H. Humphrey Institute of Public Affairs, the governor read a letter he sent to House Majority Leader Amy Koch and House Speaker and Maple Grove Representative Kurt Zellers.

“During the past two weeks, I have been listening carefully to people throughout Minnesota … they want this budget dispute resolved. While they strongly prefer my proposed solution to that of the Republican legislature … they want this government shutdown to end. Now.”

To that end, Dayton agreed to the GOP offer of June 30. Details of that offer include:

• Shift school aid payments from 70/30 to 60/40 ($700 million)
• Issue tobacco bonds to cover remaining gap (to be determined)
• Increase per student formula by $50 per year to cover additional borrowing costs ($128 million)
• Add $10 million to University of Minnesota to equalize reductions with MnSCU ($60 million)
• Restore funding to Department of Human Rights and Trade Office

But the GOP, Dayton said, would have to abide by three conditions:

1) Take all policy issues off the table for the time being

2) Drop a 15 percent, across-the-board reduction in the number of employees at all agencies, regardless of their funding source

3) After all the budget issues have been resolved in a special session, the GOP must support and pass a bonding bill of at least $500 million next session.

At the time of writing, there was no response from GOP leaders.

“I’ve had no response for two weeks and no other proposals (from the GOP). This is the only viable option to get the state government operating again...a lot of Minnesotans just want (the shutdown) resolved and frankly don’t care how,” Dayton told the crowd.  

Echoing the sentiments of several in the crowd, Humphrey Institute Director Larry Jacobs asked Dayton, “We’re two weeks into a govt shutdown. You’re now willing to accept a deal that would have prevented the shutdown altogether. Are you now capitulating to GOP demands?”

Dayton’s response: “In my 36 years of government I’ve never seen intractability and unwillingness to compromise be used as a strength. When you’re negotiating with a position that is intractable, you cannot negotiate. I’m disappointed that we can’t do it better but there is still time for Republicans to make it better.”  

Dayton reiterated that his decision to accept the GOP proposal, while he does not agree with it, was made by striving for the moral high ground.   

“I believe this is the right thing to do. More and more Minnesotans want (the shutdown) over. They need it over. I did what I thought was in the best interest of the people of this state. In the real world, for the foreseeable future, this is what would end the shutdown.”

Maple Grove Patch will have updates as they become available.