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No deal yet on property tax relief or spending cuts Associated Press

ST. PAUL, MN - Democrats who control the Legislature and Republican Governor Pawlenty are taking a break from budget talks, but plan to resume later this afternoon.

House Speaker Margaret Anderson Kelliher went into the meetings this morning saying she is maintaining an open mind and a feeling of optimism about reaching a deal.

The legislative leaders and the governor are trying to close a $935 million budget gap and give homeowners relief from rising property taxes.

The two sides are also divided on about $100 million worth of spending cuts and revenue to cover the deficit. The Legislature faces a mandatory Monday deadline to finish its business.

The main sticking points are how to structure a limit on local property tax increases and how much money to put into municipal aid and homeowner property tax assistance programs.

 

(Copyright 2008 by The Associated Press. All Rights Reserved.)

 

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