ST. PAUL -- Legislative negotiators declared they have all but settled outstanding issues remaining in the 2008 session Friday night, expecting a full deal to follow soon balancing the state budget and lowering property taxes for at least some Minnesotans.
"We are very nearly done," House Speaker Margaret Anderson Kelliher, DFL-Minneapolis, said.
Republican and Democratic leaders said they should not need much more negotiating time with GOP Gov. Tim Pawlenty, but they could not meet with him for a few hours Friday night when he spoke to a Wisconsin political event.
They were working out details on property tax relief, how to fill a $935 million hole in the state budget, health care reform and education spending.
"These things took a little time but once we kind of worked through a bunch of issues - and maybe a little bit of posturing -- I think we're on our way," Kelliher said when legislative leaders appeared Friday night on Twin Cities Public Television's "Almanac" show.
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Kelliher said it was not clear if all loose ends could be tied up before today.
Assistant Senate Majority Leader Tarryl Clark, DFL-St. Cloud, held her fingers a half inch apart to show the small differences remaining, later saying: "It's very close."
Legislative leaders said they and Pawlenty have agreed to limit local property tax increases to 3.9 percent a year. Pawlenty wanted a strict lower cap, but Democrats say they fear a cap as small as 3.9 percent would hurt local governments' ability to raise money for services. Pawlenty said a property tax increase limit is the only thing that will keep property taxes in check.
