Legislative leaders and the governor missed their self-imposed deadline to have agreement on broad areas of the state budget by midnight last night (Mon).

The governor offered to shave 200 million dollars in spending from his budget request, but the gas tax and medical provider tax would have to stay.   Republicans counter-offered by bumping up their proposed education spending towards the governor’s number, but some of that money would have to come from trimming human services spending — which Walz doesn’t like:

“Their suggestion of how to find education money is to create deeper pain in human services and then just shift that money.”

Senate Republican Majority Leader Paul Gazelka’s says about the governor’s and Democrats’ offers:

“No tax reductions in the 12 billion dollars of tax increases over the next four years. We couldn’t get them to lower one of them.”