Skip to main content

Governor Mark Dayton says no to GOP tax bill, unless he gets education funding

The state is hurtling towards a deadline to reach a vital agreement on tax changes.

Governor Mark Dayton has laid down the gauntlet to Republican leaders in the Legislature over their proposed tax bill.

GOPers in the House and Senate agreed on a tax bill on Friday that would align Minnesota's tax codes with federal rules, and provide state tax cuts for Minnesotans as well as relief on corporate taxes.

But Dayton argues the GOP plan is nowhere near as generous to lower and middle income families as his own proposal, saying it instead provides further tax cuts to big businesses that have already seen their tax bills slashed at federal level.

Screen Shot 2018-05-14 at 4.29.47 PM

He is determined that the state provide emergency funding to cover the $138 million budget shortfall affecting 59 school districts for the next school year – which is around the amount of revenue the state would give back in tax cuts under the Republican plan.

On Monday, Dayton said he wouldn't sign the bill aligning the state and federal tax codes unless the Republicans include the education funding.

That could lead to a very tricky impasse because if no tax deal is agreed by the end of the session, some 860,000 Minnesotans will see their taxes increase by hundreds of dollars because of the removal of certain deductions in the federal Tax Cuts and Jobs Act.

Republicans however had been reluctant to approve the education funding, arguing that the shortfall is the fault of the districts, who have agreed to large pay rises for teachers and also suffered from dwindling enrollment.

Speaking to KSTP, Senate Majority Leader Paul Gazelka said meeting Dayton's request would be "next to impossible" in the timeframe. 

Next Up

Minneapolis skyline

Climate change in Minnesota is clearly seen at night

A lot of warm days and far fewer chilly nights.

Hennepin County Medical Center, HCMC

Driver, 83, killed in collision with semi-truck in Northfield

The Northfield man died at Hennepin County Medical Center.

Taco Bell

Impatient driver who fatally struck woman outside Taco Bell sentenced

Tammy Renae Olson was sentenced to four years in prison.


Police: Teens 'careen recklessly' in stolen BMW, Mercedes in north metro

They ended up crashing the stolen vehicles, with two arrested and two others on the run.

fire truck

Fire table sparks blaze at Edina home

The fire remains under investigation, but fire officials believe it was accidental.

money hundred dollar bills

Charges: California woman embezzled over $1M from MN employer

Mai Xiong faces several federal charges in the case.

Hsa Law Yaw Say

Shot woman who sparked appeal found injured at Twin Cities hotel

Authorities began searching for Hsa Say early Monday morning.


Development may bring changes to Stonebrooke Golf Club in 2023

The popular southwest metro golf course offers scenic views of O'Dowd Lake.


Homeowners alert DNR to grouse hunting complaints in Northland

Some hunters are allegedly shooting directly in front of houses.


Charges: Teen couple tortured children while babysitting in St. Paul

A doctor called this "the worst case of abuse he has seen in over 20 years."


New apartment proposal could spell the end for Myth Live

Myth Live in Maplewood has a spotty past with the surrounding community.

Hsa Law Yaw Say

Police trying to find woman, 18, who was shot at in St. Paul

Police are looking for help finding the woman.


Dayton vetoes GOP-backed tax, spending bills

There's uncertainty over what happens next.

Here's why Gov. Dayton is touring elementary schools

He wants to put an extra $138 million to cover school district shortfalls.

Governor Dayton faces decision on abortion bill

It would require doctors to ask abortion-seeking patients if they want to see an ultrasound.

Dayton blocks abortion bill in second veto of year

The bill would have forced doctors to ask abortion-seeking patients if they want to see an ultrasound.

What's in the tax bill agreed by Republican lawmakers?

The House and Senate agreed the bill on Friday.

Once again, the Minnesota legislative session is ending in acrimony

We're hurtling towards the Monday deadline with no agreement on two hugely important bills.

5 things from Gov. Mark Dayton's final State of the State speech

The Minnesota governor gave his final SOTS address on Wednesday.