Forecast Surplus Could Spell Tax Cuts, Leaders Say

ST. PAUL (AP) - Talk of tax cuts has followed word that Minnesota's budget will run up a $1 billion surplus.

Top Democrats and Republicans separately raised the prospect Thursday of giving tax breaks with a portion of the surplus. The first dose could come soon in the next session as lawmakers weigh whether to match up Minnesota's deductions and credits more closely with those at the federal level.

Lawmakers are urging restraint among groups already lining up for the slice of money. The extra cash due to pile up over the next 2 1/2 years could be swallowed up almost entirely if legislators simply covered inflationary pressures in existing programs.

Governor Mark Dayton wants to expand eligibility for a child care tax credit by removing an income cap.