Inching along

Posted at 12:56 AM on May 15, 2008 by Tom Scheck

Talks are set to resume at 10:30 Thursday morning. They wrapped up negotiations last night at Midnight after DFLers presented their latest budget offer. It includes a property tax cap of 5.5% and has tails of $150 million for property tax relief ($75m in LGA for Senate - and $75m in direct property tax relief for the House).

The plan also takes $2.5 million from Governor Pawlenty's Achieve initiative and makes cuts of $1 million each to the University of Minnesota and MnSCU and $500k cut to Corrections. There's saving from a GI Bill, they tap the Worker's Compensation Special Fund, the Minnesota Investment Fund and the plan requires St. Paul to pay $1.5 million for the Arena loan (which the state will pick up later).

There are also fees in the offer. There is a Motor Vehicle transfer fee increase of $10 (it generates $10.2 million) and a $5 increase for professional licenses (Electronic Licensing Surchage generates $3.3 million). The plan also shifts inpatient hospital payments by one month generating $10 million.

The Health Plan Reserve Proposal ($50 million) is still on the table but would be backed up by money from the Health Care Access Fund.

DFL House Speaker Margaret Anderson Kelliher said she hoped the offer was a pathway to a deal. Governor Pawlenty's spokesman said the proposed property tax cap was too high but was optimistic since the two sides are still talking.

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