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June30,2011GovernorMarkDayton
130
StateCapitol75Rev.Dr.MartinLutherKingBlvdSt.Paul,MN55155GovernorDayton:Werespectfullyrejectyourlatestbudgetofferreceivedvialettertodayat4:00pm.Substitutinganincometaxincreaseforthetobaccobondfundingcanonlybeseenas
a
stepbackwardsinournegotiations.Yesterdayyougraciouslytookallofyourtaxincreasesoffthetable,whichallowedustoproceedwithanofferthatincludedothermeaningfulreforms.AnyproposalthatincludesataxincreasedoesnothavethesupporttopasseithertheHouse
or
theSenate.Wecannotmoveforwardwithnegotiationsuntilyouretumtoyourearlierpositionregardingtaxincreases.Wewelcomeanopportunitytodoso.Inthemeantime,pleasefindattachedtothisletterthelanguagefora"lightson"fundingbillforthenexttendays.Weurgeyoutocallusbackintosessionimmediatelyso
we
canavoidthecostlyandunnecessarypainofagovernmentshutdown.TheHouseandSenateareassembledtonightintheirrespectivechambersandarereadytoworktoavoidashutdownanditsharmfuleffectsontheStateofMinnesotaanditsemployees.Respectfully,Rep.KurtZellersSpeakeroftheHouse
 
STATEOFMINNESOTA
OfficeofGovernorMarkDayton
130StateCapitol.75
Rev.Dr.
MartinLutherKing
Jr.
Boulevard.SaintPaul,MN55155June30,2011TheHonorableSenator
Amy
T.KochMajorityLeader,MinnesotaSenateCapitolBuilding,Room20875Rev.Dr.MartinLutherKing,
Jr.
Blvd.St.Paul,Minnesota55155TheHonorableKurtZellersSpeakeroftheHouse463StateOfficeBuilding
100
Rev.Dr.MartinLutherKing,Jr.BLvd.St.Paul,Minnesota55155DearSenatorKochandSpeakerZellers:
I
appreciateyourlatestoffer,whichwediscussedat
3:00
pmtoday.
I
amwillingtoagreetoyourproposed
10%
shiftinschool
aid
payments,asthefinalelementtoprevent
a
shutdown.However,
I
annotagreetobothatobaccobondissuanceand
a
schoolshift,neitherofwhicharepermanentrevenues.
I
roposesubstitutingforthetobaccobondinyourproposaleither:1.anadditional3%incometaxonMinnesotanswithincomesover$1million,whichwouldprovide$746millionforthebiennium.Thiswouldaffectonly7,700Minnesotans,andstillleavesthepercentageofincometheypayinstateandlocaltaxesbelowmostotherMinnesotans;or2.a
1.5%
additionalincometaxonMinnesotanswithincomesover
$1
million,plustheadditionaltaxreformsoutlinedintheproposalmadebySenatorBakk,RepresentativeThissen,andmyselfthismorning;i.e.,$303millionincorporatetaxreform,$13millioninnon-residentestatetaxes,and$32millioninsalestaxreforms.
n~
arkDayton,Thankyouforyourconsiderationofthisproposal.Iwillawaityourresponse.Governor
Voice:
(651)
201-3400
Or
(800)
657-3717V'v'ehsite:http;/'"£ovcrnoLstatc.mn.USFax:(65])797-18501\1NRelay(800)627-3529AnEqualOpportunityEmployer
 
OffertoGovernorMarkDaytonfromMinnesotaLegislatureJune30,2011at3:00p.m.
Shiftschoolaidpaymentsfrom
70/30
to60/40($700M)IssuetobaccobondstocoverremaininggapasagreedtobyGovernor,SpeakerandSenateMajorityLeader(TBD)Increaseperstudentformulaby$50/yrtocoveradditionalbon-owingcosts(+128M)Add$1OMmoretoUniversityofMinnesotatoequalizereductionswithMnSCU($60Mforhighereducation)RestorefundingtoDepartmentofHumanRightsandTradeOfficeSessionDetails:Signedagreementthattonight'sSpecialSessionoftheLegislaturewouldbeconfinedtopassinga"lightson"extensionoffundingforallcurrentoperationsandobligationsofstategovernmentuntil11:59p.m.onJuly11,2011.Noothervoteswouldbepermitted,andthesessionwillconcludeby11:59p.m.onJune30,2011.AllbudgetbillswillbecompletedandpassedonMonday,July11,2011.
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