Health Care Agreement Reached in Minnesota Budget Talks

MN Budget Deal Reached

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Health Care Agreement Reached in Minnesota Budget Talks

By KBJR News 1

Story Published: May 17, 2008 at 9:16 PM CDT

Story Updated: May 18, 2008 at 4:34 PM CDT

ST. PAUL -- Gov. Tim Pawlenty and state lawmakers reached a final agreement Sunday afternoon on bills needed to end the 2008 legislative session, with only a few hours to spare.

Pawlenty and legislative leaders met early into Sunday morning, then broke for a few hours so lawmakers could attend church services.

Lawmakers were expected to work into the night approving the bills that comprise the deal, with a constitutional deadline of midnight for adjournment.

Pawlenty's office announced that the overall deal included a property tax cap that would limit cities and counties to an increase of 3.9 percent a year, which is projected to save taxpayers $78.5 million in 2009 and $460.5 million over the next three years.

The deal also included state bonding to restore funds for the Central Corridor light rail line connecting the downtowns of Minneapolis and St. Paul, which Pawlenty had vetoed from an earlier bonding bill; as well as bonding for a new state park at Lake Vermilion in northern Minnesota and for a nursing facility at the Minneapolis Veterans Home.

Also part of the deal was a tax credit for veterans and members of the military, up to $750 a year for individuals who served more than 20 years or were disabled in service.

Pawlenty's office said the deal would amount to an overall reduction in state government spending, and a balanced budget for the 2008-09 budget cycle year; and progress toward reducing a projected deficit in the following two-year cycle.