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Timeline of Minnesota budget negotiations: offers and counter offers

Feb. 15
Gov. Mark Dayton proposes al $37 billion 2012-2013 budget that makes nearly $1 billion permanent spending cuts and raises $4 billion in new revenue by increasing the tax rate on the richest 5 percent of Minnesotans.

Feb. 28
Dayton modifies his budget proposal in response to an updated economic forecast. He eliminates his proposal for a temporary 3 percent surtax on top incomes, cutting his revenue proposal by $918 million.

March 10
Republican leaders in the House and Senate release budget proposal that includes $5 billion in budget cuts. This is the budget Republicans sent to Dayton in May and he vetoed.

May 16
Dayton cuts his revenue proposal in half, by $2 billion, and raises the tax rate on the richest 2 percent of Minnesotans. He also increases the amount of spending cuts to $2 billion. His total budget proposal is $35.8 billion.

June 6

Legislative Republicans do not change their total budget. They do offer to agree to Dayton's levels of spending in K-12 education and public safety, but the additional funds would mean deeper budget cuts in other areas since no new revenue would be collected.

June 16
Republicans propose dropping their proposal to cut corporate income taxes.

June 29
Republicans propose an increase in K-12 school aid shift and selling bonds against future tobacco settlement revenue. They also propose adding a list of social policy issues to the negotiations.

Gov. Mark Dayton
Gov. Dayton's office
Gov. Mark Dayton

June 30
Dayton proposing raising new revenue by increasing the tax rate on the top 0.3 percent of earners. This would affect 7,700 people who earn more than $1 million per year. Later, Dayton offers to drop his tax plan entirely and balance the budget using cuts and an accelerated school aid shift, in exchange for higher per-pupil funding to help districts absorb the change. Republicans agree to the framework of Dayton's previous offer, but they also include their idea to sell bonds against future tobacco settlement revenue. Dayton agrees to the framework of the Republican proposal, without the tobacco bond sales proposal. Instead, Dayton offers Republicans two choices, both of which were rejected: 3 percent surtax on people making more than $1 million or a 1.5 percent tax increase on people making more than $1 million plus tax reform.

July 1
With no budget agreement, the government shuts down.

July 14
Dayton and GOP leaders agree to a budget framework. Dayton accepts an earlier GOP offer that includes a $700 million shift from K-12 school spending and $700 million in tobacco revenue bonds. As part of the deal, Republicans agree to drop a proposed 15 percent reduction in state workers and accept a $500 million bonding proposal. Republicans also agree to eliminate controversial social policies from spending bills.

Sources: Office of Rep. Kate Knuth, MinnPost

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