Governor Unveils Supplemental Budget

ST. PAUL, Minn. (AP) — Gov. Mark Dayton is proposing to use half of Minnesota's projected $1.2 billion surplus to cut taxes, with another big chunk going to fill reserve accounts.

Dayton outlined his supplemental budget plan Thursday, the day the House was planning to vote on a slightly smaller tax bill.

Dayton's proposal would extend $300 million in tax deductions and exemptions available at the federal level to state income tax filers. The most significant, a change to the standard deduction for married couples, wouldn't take hold until next year. Another $230 million would compensate for the repeal of new business taxes.

Dayton also recommends upping the state reserve by $455 million.

The remaining $162 million could go to new spending lawmakers classify as essential.