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In Minnesota Budget Shutdown, Both Sides Have Options

Minnesota State Capitol
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ST. PAUL, Minn. (AP) – As Minnesota’s government shutdown drags on, Democratic Gov. Mark Dayton and Republican legislators are likely seeking a way out.

Experts say they have several options for reaching a compromise, including one that doesn’t involve raising taxes.

Former state finance commissioner Tom Hanson says he foresees Republicans agreeing to spend more than the $34 billion they’d proposed as a spending limit but seeking ways to pay for it other than an income tax hike. Hanson served under Republican Gov. Tim Pawlenty and he says that’s the worst tax increase.

Dayton has sought an income tax increase on the state’s top earners, saying they can afford it.

Some other options for raising money include further delays in school aid payments, surcharges on medical providers, expanded gambling or issuing bonds for tobacco payments

(Copyright 2011 by The Associated Press.  All Rights Reserved.)

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