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Friday, June 27, 2025

Minn. braces for government shutdown over taxes

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ST. PAUL, Minn. (AP) — A standoff over taxes and spending sent

Minnesota hurtling Thursday toward a midnight government shutdown

that could force thousands of layoffs, bring road projects to a

standstill and close state parks to campers just before the Fourth

of July weekend.

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As the deadline drew ever closer without a resolution, people

rushed to get driver’s and fishing licenses, and park officials

began warning campers to pack their gear and leave.

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The showdown was something of a small-stage version of the drama

taking shape in Washington between President Barack Obama and the

Republicans over taxes and the debt ceiling.

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Though nearly all states are having severe budget problems this

year, Minnesota stood alone on the brink of a shutdown, thanks to

Democratic Gov. Mark Dayton’s determination to raise taxes on

high-earners to close a $5 billion deficit and the Republican

Legislature’s refusal to go along.

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Negotiations between Dayton and legislative leaders were fitful,

starting and stopping with no outward signs of progress, and

details were scant, since the two sides agreed to what they

jokingly called “the cone of silence.”

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A shutdown would halt non-emergency road construction, shut the

state zoo and Capitol, and stop child-care assistance for the poor.

More than 40 state boards and agencies would go dark. Critical

services, including the State Patrol, prisons, disaster response

and federally funded health, welfare and food stamp programs, would

not be affected.

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State park officials told campers to strike their tents well before

the deadline, even though there was still a chance of a deal. They

said it would be too difficult to herd campers out in the middle of

the night if talks failed.

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In Afton State Park, near St. Paul, Rick Miller of Elko-New Market

pushed up a camping trip with his 7-year-old son, Jack, to beat the

shutdown. Miller originally hoped they could spend Thursday and

Friday nights in the park on the picturesque St. Croix River, but

he booked a campsite for Wednesday night.

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“With the shutdown we decided we better come and get it in,” he

said. “We don’t know how long it will be before we can get back

into a state park.” He added: “It’s too bad they can’t just get the

job done.”

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Dayton is Minnesota’s first Democratic governor in 20 years, and

Republicans are running the entire Legislature for the first time

in 38 years.

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The governor has proposed raising taxes on couples earning more

than $300,000 and individuals making more than $180,000. In an echo

of the debate in Washington, Republicans have opposed any new

taxes, arguing instead that the state should rely on spending cuts,

including deeper reductions in health and welfare than Dayton is

willing to accept.

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Some GOP moderates have talked of breaking the impasse with other

means of raising revenue, such as eliminating tax breaks or

authorizing a casino. Dayton has said he is open to such

ideas.

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Both sides could avert a shutdown by holding an immediate special

session to pass a “lights on” budget bill that would keep the state

running while the budget talks continue.

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Some rank-and-file Republican lawmakers said they were starting to

feel the pressure.

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First-term Rep. Mike LeMieu said his constituents were about evenly

split between the Republican line on spending and Dayton’s tax

push. He said the fallout could come in next year’s legislative

elections.

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“I personally think the Republicans will probably be more damaged

than the governor,” he said. “The fact is that we’re all up for

re-election again next year, and he’s not up for three

years.”

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