Minnesota political leaders fish for a budget deal with 3 days left in session

3 days left: Minn. leaders fish for budget deal

ST. PAUL, Minn. — Minnesota political leaders planned to engage in long-distance budget negotiations Friday, with the Legislature’s finale dependent on a deal with a governor 300 miles away.

Republican Gov. Tim Pawlenty arrived Thursday night at a resort town near the Canadian border for the 62nd Annual Governor’s Fishing Opener, a series of events being held this year at Lake Kabetogama. His staff insisted he could juggle fishing and finances, but stressed his schedule could chance at any time.

“Progress has been made,” Pawlenty said on his weekly show on WCCO Radio Friday.

Negotiations focused on the state’s $3 billion deficit and a related piece of health legislation.

The Legislature’s window for passing bills closes at midnight Sunday. Without a deal, Pawlenty might be forced to call a special session to balance the budget. The regular session must end by Monday but no bills can be passed on the final day. House Majority Leader Tony Sertich, a Democrat from Chisholm, predicted that there would be a deal over the weekend.

On Friday, lawmakers in charge of spending committees met with Management and Budget Commissioner Tom Hanson. That came after Pawlenty participated in a late-night conference call with Democratic and Republican lawmakers.

A few sticking points remain.

That includes how to pay for an early expansion of Medicaid for the poor under the federal health care overhaul. Minnesota is among nearly a dozen states allowed to tap into a pot of federal money to help defray costs for insuring poor, childless adults before the health law takes full effect in 2014.

But Minnesota has to put up additional money to qualify for some of the federal aid.

House Speaker Margaret Anderson Kelliher promised more than 100 people at a Capitol rally Thursday that the Legislature would reach an accord that would get more people into insurance programs faster.

“We will deliver health care for more Minnesotans, over 100,000 more Minnesotans,” she said.

Pawlenty vetoed the bill that would have accomplished the expansion, citing his opposition to surcharges on hospitals, health insurance plans and group homes to help pay for it. He said he was open to the concept if other financing was found.

The broader budget problem continued to vex top officials. Among the items under discussion was whether to make previously temporary budget cuts permanent and designate money to pay schools back for delayed payments last year.

Republican Rep. Kurt Zellers, the House minority leader, said all the pieces of an agreement are on the table.

“It’s just a matter of putting the puzzle pieces together,” he said.

Senate Majority Leader Larry Pogemiller said he feared talks were moving in a direction that would “postpone the tough decisions until the next governor and Legislature are elected.” Next year, lawmakers will be confronting a budget deficit that could top $5 billion.

Associated Press Writers Martiga Lohn and Briana Bierschbach contributed to this report.