Gov. Mark Dayton said he has given up hope of calling a special legislative session to pass tax breaks and millions of dollars in statewide construction projects after last-ditch negotiations with legislative leaders failed to break the deadlock.
"I am not going to call a special session," Dayton said Thursday after a brief, 30-minute meeting with legislative leaders.
Dayton and top legislators have met for three months after the spring session collapsed without agreement on millions of dollars in construction projects. Legislators were seeking a special session to pass the construction measure and to fix a tax package that included an error that would cost the state $100 million.
The breakdown in negotiations ends hope for $260 million in tax breaks for veterans, farmers and students with college debt, at least for this year. It also kills a property tax break and liquor license for a proposed professional soccer stadium in the Midway area of St. Paul.
The abrupt end to talks comes a month after Dayton and legislative leaders had signaled they were close to an agreement. The sticking point, however, continued to be a proposed light-rail extension from downtown Minneapolis to Eden Prairie.
Dayton and DFLers have pushed hard for a way to fund the Southwest light-rail line, which has strong support among business owners along the proposed route. But Republicans have been equally dug in against it, saying it is a waste of taxpayer dollars.
GOP House Speaker Kurt Daudt, of Crown, called it a "boondoggle project" and an "inefficient" way to move people. He said that the project remains controversial because of an outstanding lawsuit against it and that he has additional concerns about the project's operating costs.
Senate Majority Leader Tom Bakk, DFL-Cook, expressed concern for future traffic congestion as the Twin Cities metropolitan area continues to grow. "What are these metro highways going to look like unless we find some alternative to get people off them?" Bakk said.