Legislative leaders: Deal likely tonight

Negotiations between Governor Pawlenty and legislative leaders broke off until 8:45. The governor is speaking at the Wisconsin State Republican Party Convention. Legislative leaders are also appearing on Almanac.

DFL House Speaker Margaret Anderson Kelliher and GOP House Minority Leader Marty Seifert say they expect an agreement to be reached tonight, floor sessions tomorrow and then they adjourn sine die. Kelliher said "we are as close as we have ever been to reaching an agreement." Seifert said "something major would have to happen for a deal to unravel."

Kelliher said they are still negotiating a health care reform package and an education finance package. It appears that a property tax cap of 3.9% will be included in the deal. What is uncertain is the level of Local Government Aid and direct homeowner relief. Earlier in the day, DFL Senator Tarryl Clark said they agreed to use $500 million from the state's budget reserves. Kelliher also hinted that funding for Central Corridor could also be a part of the deal.