Update: Minnesota Government Shutdown Could End Soon

As news broke today about a possible budget agreement that would end the state government shutdown, Sen. Ted Lillie said it was encouraging that talks between the governor and GOP leadership have resumed, though he added that the stipulations Dayton laid out this morning are “very significant.”

Gov. Mark Dayton has “reluctantly" agreed to a June 30 Republican budget offer, with conditions.

The offer generates $700 million dollars through further school aid shifts, and issues $700 million in “tobacco bonds” to cover the rest of the $1.4 billion gap between the governor and state Republicans.

The governor today (July 14) sent a letter to Senate Majority Leader Amy Koch and Speaker of the House Kurt Zellers that said he doesn't necessarily agree with the method of resolving the budget impasse, but he does think it's necessary to end the shutdown as soon as possible.

"I am willing to agree to something I do not agree with—your proposal—to spare our citizens and our state from further damage," Dayton wrote.

However, Dayton added three conditions to his agreement that will ultimately determine if the shutdown ends:

• Republicans must abide by their public statements that they will take all policy issues off the table at this time.
• They must drop a 15 percent, across-the-board reduction to employees in all agencies, regardless of their funding source.
• After the budget issues have been resolved in a special session, Republicans must support and pass a bonding bill of at least $500 million next session.

Lawmakers held an afternoon conference call to talk about the details, many of which are different from the GOP's June 30 proposal, Lillie said. The letter the GOP received from Dayton this morning is the framework, a counter proposal.

He says, ‘I’ll agree but I won’t agree,’” Lillie said, adding later: “It’s a counter offer. He has not fully agreed to the offer made in June.”

Lillie, a Republican who represents Stillwater, said it was “very curious” that Dayton agreed to a proposal presented two weeks ago.

"If that's the case, why did we go into a shutdown?" Lillie said.

“It’s been very frustrating for the past few days that the governor has not been available,” said Lillie, who was in meetings with fellow legislators this afternoon.

If Republicans agree to Dayton's conditions, a special session to pass a budget—and end the state shutdown—could begin within days.

Lillie was also at Keys in Woodbury today, where there was a “spirited conversation” about the shutdown and its impacts. There was some general surprise among people when the two lawmakers outlined how the state arrived at the shutdown.

“The people of Minnesota are frustrated—they want this resolved,” Lillie said. “We need to find a way to get back to work.”

Dayton spoke before alumni at the University of Minnesota’s Hubert H. Humphrey Institute of Public Affairs.

Echoing the sentiments of several in the crowd, Larry Jacobs, a Humphrey Institute director, asked Dayton: “We’re two weeks into a government shutdown. You’re now willing to accept a deal that would have prevented the shutdown altogether. Are you now capitulating to GOP demands?”

Dayton’s response: “In my 36 years of government I’ve never seen intractability and unwillingness to compromise be used as a strength. When you’re negotiating with a position that is intractable, you cannot negotiate. I’m disappointed that we can’t do it better but there is still time for Republicans to make it better.”  

Dayton reiterated that his decision to accept the GOP proposal, while he does not agree with it, was made by striving for the moral high ground.

“I believe this is the right thing to do. More and more Minnesotans want (the shutdown) over,” he said. “They need it over. I did what I thought was in the best interest of the people of this state. In the real world, for the foreseeable future, this is what would end the shutdown.”

Messages for comment were also left for Sen. Ray Vandeveer, Rep. Kathy Lohmer and House Majority Leader Matt Dean. The story will be updated as soon as those lawmakers respond.