Gov. Mark Dayton threw an additional $60 million supplemental budget plan into the volatile legislative mix Monday, hoping to restore some previous cuts and lessen a corporate tax loophole.

It didn't go over big with Republican Senate Majority Leader David Senjem:  "We have managed Minnesota’s budget well in the past year from a $5 billion budget deficit to over a $1 billion surplus and the first thing the Governor wants to do is raise taxes.  Embarrassing!"

Here's how the governor's staff describes the supplemental budget:

• Funds the Dayton Jobs Bill.  The budget includes $35 million for the Jobs Now Tax Credit, which will put thousands of Veterans, students, and currently unemployed Minnesotans back to work.  The budget also includes $2 million for an expansion of FastTRAC and an additional $10 million for the Minnesota Investment Fund.   
• Increases Benefits for Veterans.  The Governor’s supplemental budget provides $915,000 for an expansion of the Veterans GI Bill, $1.05 million in increased funding for County Veterans Service Officers, and keeps the Governor’s commitment for $100,000 in sustained funding for honor guard services.
• Reverses Deepest Cuts in DHS.  The Governor’s supplemental budget includes $5.9 million for Personal Care Attendant funding, $6.4 million for Medical Education Research Costs, and $4.7 million for emergency, life-saving care like chemotherapy and dialysis for the sickest Minnesotans.
• Fighting the Spread of Asian Carp.  The Governor’s budget includes $4 million annually for the control of aquatic invasive species. 

And here's how the governor's office describes the loophole deal:

Currently, some multi-national corporations who pay taxes in Minnesota receive an 80% tax preference on qualifying overseas income.  This type of tax treatment is only available in a few states for multi-national corporations.  By simply reducing that tax preference to 62% this year, and 39% in years to come, Minnesota can pay for the types of services and programs we value without affecting our status as a competitive and attractive place to do business. 

 But Senjem objects to that, saying in a statement:

In a letter last year, Joy Lindsay of the Minnesota High Tech Association Board said, "Minnesota’s foreign royalty deduction was enacted during the Perpich administration to encourage companies to invest in research and development in Minnesota which creates high-paying, high-tech jobs here."  Governor Dayton’s proposal would jeopardize thousands of technology workers’ jobs, whose average wages are much higher than the state’s average.

Dayton says:

 "My supplemental budget invests in more jobs for Minnesotans, deserved support for our Police Officers and Veterans, and correcting the most extreme cuts to essential health care made last year.   Those are my priorities: the people of Minnesota and good jobs for all of them."

Senjem says:

"What we are doing is working for Minnesota. I can’t believe the Governor wants to retreat to raising taxes with the surplus just announced."