Minn. budget debate ratchets up with Dayton plan

Published 8:33 am Tuesday, February 15, 2011

ST. PAUL, Minn. — Gov. Mark Dayton is presenting a two-year budget plan to a Legislature anxious to know his ideas for raising taxes and cutting spending to fix a gaping deficit.

The first-term Democrat says he’ll make good on a campaign promise to propose a new fourth tier to the state’s income tax bracket. That would affect Minnesotans with incomes in the six figures or higher.

Also, a Capitol official familiar with Dayton’s proposal tells The Associated Press the governor will ask lawmakers to spare city and county governments from state payment cuts in hopes of avoiding property tax increases. The official disclosed the proposal to the AP on condition of anonymity. Dayton’s budget is due for release Tuesday morning.

Minnesota faces a projected $6.2 billion deficit in the next two years.