A final deal between the MN legislature and the Governor has been reached...

In what looks like an overall good deal in light of the DFL majorities in both Minnesota houses, the Governor today announced that an agreement had been reached between the DFL -controlled Minnesota legislature and the Governor. It included benefits for veterans, as well as the extra funding for new facilities at the Minneapolis veterans home, a cause that Governor Pawlenty had been championing for quite some time. In a big election year, it appears that neither side wanted a long, drawn-out battle to give voters the impression that they would be a "do-nothing" legislature.

RELEASE FROM GOVERNOR'S OFFICE:

GOVERNOR PAWLENTY AND LEGISLATIVE LEADERS ANNOUNCE BIPARTISAN BUDGET AGREEMENT, INCLUDES PROPERTY TAX CAP

~ Governor delivers on commitment to provide tax relief, balance budget, reduce spending ~



Saint Paul - Governor Tim Pawlenty and legislative leaders have agreed on a plan to balance the state budget without raising taxes while providing significant tax relief for Minnesotans. The agreement erases a projected $935 million deficit and includes the Governor's plan for a property tax cap and tax relief for veterans and military members.



During several days of negotiations leading up to the agreement, Governor Pawlenty fought for a property tax cap to protect homeowners from rapidly increasing property taxes. The agreement includes a cap that will limit cities and counties to an increase of 3.9 percent per year. Governor Pawlenty's property tax cap and related relief is projected to save taxpayers $78.5 million in 2009 and $460.5 million over the next three years. Also, cities and counties will receive additional aid.



"Minnesotans deserve tax relief and a state government that lives within its means," Governor Pawlenty said. "This agreement delivers both. I want to thank legislative leaders from both parties for their hard work and willingness to seek out solutions. The result is a balanced budget, a strong property tax cap, additional tax relief, reduced government
spending, no additional taxes, health care reform, a new state park and new facilities at the Minneapolis Veterans Home."

Highlights of the overall package include: Property tax cap of 3.9 percent, plus household growth, for three years

$25 million in property tax relief through the property tax refund program which provides direct relief to homeowners and $60 million in local government aids and credits

Tax relief for veterans and members of the military, including a new tax credit of up to $750 per person annually for those who served more than 20 years or were disabled in service, a doubling of the existing overseas deployment tax credit to $120 per month deployed and an exemption from state income taxes for drills and similar activity

An overall reduction in state government spending and a balanced budget for FY 2008-09

Progress toward resolving the projected budget deficit for FY 2010-11

Total bonding within the state's 3 percent debt service limit,including funding for Central Corridor, a nursing facility at the Minneapolis Veterans Home and Lake Vermilion State Park

Nation-leading health care reform that includes increased transparency, pay for performance, required e-prescribing by 2011 and tax credits

Increased funding for K-12 schools and nursing homes

I'm still waiting to see the details on this one:

Nation-leading health care reform that includes increased transparency, pay for performance, required e-prescribing by 2011 and tax credits

I'm pretty sure that anything that is government-run, especially with regard to health care, probably has a few significant devils hiding in the details.

***UPDATE **** 9/18/08, 9:44pm

Gary Gross has a post on a synopsis of more of the details of the agreement, as submitted in a letter from Steve Gottwalt. Read the whole thing.