Cigarette Tax Fails to Light Fire under Budget Talks

Just as in state budget negotiations, Gov. Mark Dayton made two new proposals Wednesday. He offered to increase the cigarette tax by $1 per pack or create a 2 percent income tax surcharge for the 7,700 Minnesotans who make more than $1 million annually.

But that didn't move budget talks toward ending . Rather, Republican leaders told reporters assembled outside the governor’s office that “things went backwards today.”

Dayton met with GOP leadership Wednesday afternoon to try to break a budget impasse that has lasted six days and left nine legislative bills untouched. A $1.4 billion gap remains. Wednesday’s meeting broke up after just 30 minutes.

After the meeting, Dayton said Republican leaders rejected all of his offers.

“If it was a step backwards, it was their step backwards,” he said. “I took a step forward. I offered two serious options.”

The GOP leadership and Dayton also discussed the option of using gambling revenue to narrow Minnesota’s $5 billion deficit but, according to Dayton, Republicans don’t have support within their caucus to pass a bill. Other options include $300 million in annual health care surcharges and delayed payments for K-12 education.

There was no word on when the governor and GOP leaders would meet again.