The governor welcomed the Republican offer to increase spending on schools and courts but said "a huge gulf" remains.
RACHEL E. STASSEN-BERGER and ERIC ROPER , Star Tribune staff writers
After weeks of budget stalemate at the Capitol, Republican lawmakers on Monday night offered to increase their spending on schools and courts by $110 million, moving closer to DFL Gov. Mark Dayton's budget proposals for those areas.
"This is a significant move for us. It is a significant budgetary compromise from our standpoint," said House Speaker Kurt Zellers, R-Maple Grove.
Dayton called the proposal a "meaningful offer," but said there is still a "huge gulf between us."
The Republicans still plan to produce a $34 billion two-year budget -- "something I will not agree to," the governor said Monday.
The GOP would have to cut spending in other areas to hit their budget target, which is about $2 billion less than Dayton proposes to spend.
Also left unresolved is the question of whether taxes would be raised -- something Dayton supports for the wealthiest Minnesotans and the GOP has said simply cannot happen.
If the budget gulf is not closed by June 30, the state government will begin shutting down, leaving parks and rest stops closed, employees out of work and services limited.
After Monday's hourlong closed-door meeting, during which Republican lawmakers made their offer, Dayton was more optimistic that a shutdown could be avoided than he had been last week. "The fact that we are meeting is definitely constructive," he said.
The legislators' offer was the first time they've made any budget movement since they sent Dayton a budget that he vetoed last month.
"There's still lots of things to talk about, but it's a big step in the right direction," said Education Finance Committee Chairman Pat Garofalo, R-Farmington.
The K-12 education bill Republicans produced would have spent $14.1 billion; they now are proposing to spend $80 million more.
But the gap in education spending has been less about how much to spend and more about where it is spent.
When Dayton vetoed their original measure, he said it would pit "student against student."
He said it cut spending on "poor children and children of color," partly by slashing integration aid in order to fund other increases.
Senate Majority Leader Amy Koch, R-Buffalo, said Republicans still believe those funding shifts include needed reform and will have to be "part of the discussion."
Republicans and Dayton were similarly close in spending proposals for courts and public safety but far apart on policy. The GOP's new proposal would add $30 million to its existing $1.7 billion bill.
While Dayton said that while Monday's offer was "worthwhile," it does not bring him closer to signing an education budget measure or a public safety and courts budget measure.
He said he wanted to agree on an overall spending figure before he enacts any more budget bills.
The evening movement on the budget was in sharp contrast to a morning of aggravation among Republicans who were expecting Dayton at a meeting about K-12 funding and policy.
The governor did not show up.
"We need the governor to come out and play. We need him here to help us reach an agreement on this," said Garofalo.
Said Rep. Tim Kelly of Red Wing, one of the Legislature's education specialists: "This morning was frustrating."
Dayton was in the office, but did not attend the meeting. Later in the day, he apologized for lawmakers' expectations that he would attend. He said it was never his intention to show up at every meeting with lawmakers.
"We've still got a state government to run," Dayton said.
Legislative experts plan to discuss the transportation and courts and public safety budgets with Dayton administration officials on Tuesday.
The governor said he does not plan to attend either of those sessions but intends to show up for any meeting with legislative leaders on the overall size of the budget.
"I see these meetings as necessary," Dayton said. "We have a lot of differences to resolve."
Rachel E. Stassen-Berger Twitter: @rachelsb eroper@startribune.com • 651-222-1210
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