UPDATED Shutdown Roundup: Endgames at Minnesota Capitol

Update: June 30 at 6:58 p.m.: For the first time since Monday, leadership from both the GOP and DFL offered a glimmer of hope for the seemingly stagnant budget negotiations.

Briefing the media assembled outside Gov. Mark Dayton’s office, House Speaker Kurt Zellers (R-Maple Grove) reiterated how close the two parties were to a deal, Session Daily reported.

“We’ve always maintained that a government shutdown is not only unnecessary but just bad for Minnesotans,” Zeller said. “We’re here. We’re ready to go. It’s time for the governor to call us back (for a special session). We’re too close to the end.”

Sen. Amy Koch (R-Buffalo) pleaded with the governor to not shut down the government over a tax increase, the Pioneer Press reported.

“Please keep the state open,” Koch said. “It’s the Fourth of July; it’s beautiful outside. Let’s let Minnesotans get to those campgrounds and state parks. Let’s let them enjoy the weekend.”

MinnPost reported that Reublican Sen. Geoff Michel (R-Edina) called for Gov. Dayton to approve a “lights-on” bill that would allow for temporary funding after July 1, while the legislature figured out the most complex parts of the budget.

Put simply, if a lights-on bill were passed, the government would not shut down.

“The legislature can pass one bill tonight that would keep the state open,” Michel explained in the Star Tribune. “All we need is for the governor to sign the order to call us back. We do not want to be part of a shutdown. It is not necessary.”  

“I believe we could get to a budget framework tonight,” Koch added. “All we need is temporary funding to do that.”

Gov. Dayton has repeatedly refused to call back the legislature without a deal on the table and when the DFL got its turn to speak, Minority Leaders Sen. Bakk (D-Virginia) and Rep. Paul Thissen (District 63A) echoed that sentiment.

“Everyone is committed to working on a deal that makes sense for most Minnesotans,” Thissen said. “Minnesotans want a complete deal. They want a deal that is finished.”

According to Session Daily, DFL leaders were optimistic about the prospects of avoiding a shutdown.

“I do think a global agreement tonight that would prevent a shutdown is within reach,” Bakk said before returning to the negotiating table.

Update: June 30 at 3:35 p.m.: Senate Majority Caucus Spokesperson Michael Brodkorb emerged Thursday afternoon from the latest round of talks with nothing new to share.

"Respecting the cone of silence, I cannot comment on whether or not they're close to a deal," Brodkorb said. "There is no deal right now and there are no more meetings scheduled for today."

In a rare moment of optimism, Brodkorb did say that he fully expects that to change.

"The Republican leadership is here and not going anywhere," he said. "I cannot confirm anything but I expect them to meet again today."

No one from Gov. Mark Dayton's office addressed the on-site media.

Richfield Patch contributor David Haines was at the Capitol this afternoon talking with protesters and snapping photos. Stay tuned for this story.

Update June 30, 1:10 p.m.:

Talks between GOP leaders and Gov. Mark Dayton ended after just 30 minutes.

Senate Majority Caucus spokesman Michael Brodkorb says he expects more meetings later in the day, but nothing is scheduled.

According to Session Daily, word is that nearly every senator is at the Capitol. Don't know about the House, but "there are more than usual on a nice summer day," according to one House member.

Update June 30, 12:45 p.m.: Dayton and GOP lawmakers resumed budget negotiations in an effort to avoid a government shutdown and preempt layoffs of about 22,000 Minnesotans.

This morning’s 10 a.m. meeting ended after an hour and 15 minutes with little to report. As has become the norm, neither the governor nor Republican leaders briefed the media at the state Capitol after the meeting.

While things seem to be moving slowly inside the Capitol, community organizations have taken to the Capitol grounds in protest. A preliminary look at today’s schedule of protests is as follows:

• Minnesota Council of Nonprofits: 10-11 a.m. (State Capitol, south steps)   
• MAPE Union:  10:30 a.m. to 1:30 p.m. (Andersen Building, lobby)
• Council on Asian Pacific Minnesotans: noon-2 p.m. (State Capitol, mall and lower lawn)
• Welfare Rights Committee: noon-2 p.m. (State Capitol, South Steps)
• Fighting Back the Shutdown Rally:  3-5 p.m. (State Capitol, rotunda)
• Fighting Back the Shutdown Rally: 5-7 p.m. (State Capitol, south steps)
• American Federation of State, County & Municipal Employees: 9-11 p.m. (State Capitol, South Steps)

Minnesota Valley Transit Authority bus service to the south metro should continue, at least initially, in the event of a shutdown, said Robin Selvig, MVTA's customer service manager. MVTA serves Eagan, Apple Valley, Rosemount, Burnsville and Savage, and has contracts for a route that stops in Lakeville.

MVTA, which provides 10,000 rides daily, has enough fund balance to continue operating for about 60 days should the state government shutdown occur, Selvig said.

The only caveat, she said, is that there are two routes that MVTA provides by contract with the Metropolitan Council, which operates Metro Transit—the 477V route between Lakeville's Cedar park and ride and the Apple Valley Transit Station only, and the 475 route from Eagan's Cedar Grove station to downtown Minneapolis and the University of Minnesota. The 477V route would, however, still pick up at the Apple Valley transit station, she said.

If Metro Transit services can't operate, those routes wouldn't be able to either, she said. But she said MVTA has not heard from the council that they would not be able to operate those routes. The 477V route has five trips going in to Minneapolis during the morning, and five returning in the evening; the 475 route has four each way.

"Everything will be business as usual," she said.

She said MVTA will provide any updates via e-mail alerts, website and Facebook updates and will alert local media to get the message out to riders.

June 29

The political arena in Minnesota on Wednesday was filled with potential, plans and posturing but ostensibly little progress closing the $1.8 billion gap that separates Gov. Mark Dayton and GOP lawmakers from a budget deal.   

At around 9:30 p.m. Wednesday the parties concluded what, by all accounts, was their final round of budget negotiations without an agreement.

According to Michael Brodkorb, executive assistant to the majority caucus, the governor left the Capitol and there were no more meetings between the parties scheduled for the night.  

This with just more than 27 hours to go before a government shutdown.  

According to tweets from Star Tribune political reporter Rachel Stassen-Berger, House Majority Leader Matt Dean (R-Willernie) has said the parties are “very, very close on many issues” and that it would be “difficult to explain a government shutdown.”

Moreover, Deputy Senate Majority Leader Geoff Michel (R-Edina) told Stassen-Berger after the meeting that the parties have made progress on “almost every deal.”    

Lawmakers and the governor met Wednesday morning from 9-10:30 a.m. and quietly adjourned before slipping out a back door without offering a statement or status update.

Meetings at 12:30 p.m., 3 p.m. and 8 p.m. finished much the same way.

MinnPost reported that unless a late-night deal was made, Republican legislators were planning to “march on St. Paul” Thursday morning to demonstrate to the public their willingness to work.   

In a highly anticipated ruling, Ramsey County District Court Judge Kathleen Gearin ruled Wednesday that core functions of the state government must continue to be funded even in the event of a Friday shutdown.  

According to MPR News, Gearin agrees with Dayton’s June 15 petition which states that correctional facilities, nursing homes, public safety and payment of medical services are all "core functions" of government.

The Star Tribune reported Gearin’s written response: "The court believes that the negative impact of a government shutdown on these programs does not justify a court in overextending its authority ... the court must construe any authority it has to order government spending to maintain critical core functions in a very narrow sense.”

Gearin’s entire ruling can be accessed here, but according to local nonprofit organization Minnesota Budget Project, here is what stays and what goes:

Funding continued:

• Medicaid
• Supplemental Nutritional Assistance Program (food stamps)
• Temporary Assistance to Needy Families (TANF)
• Basic custodial care for residents of state correctional facilities, regional treatment centers, nursing homes, veterans’ homes and residential academies and other similar state-operated services
• Immediate public safety and health concerns
• Benefit payments and medical services to individuals
• Essential elements of government financial systems
• Computer system maintenance, Internet security, issuance of payments and other administrative services
• State aid to local cities and communities
• Education funding
• Care of animals and staff security at the Minnesota Zoo

Funding suspended (all other services; particular attention was given to the following):

• Horse racing
• Nonprofit services that are not included as part of the critical core functions listed above
• Child care: Programs that are federally funded through TANF will continue, but payments for all other non-TANF child care assistance will cease
• Construction: Keeping a bridge from collapsing is a critical core function, but Gearin ruled that all other bridge and road work is not

Dayton responded to Gearin’s ruling by saying that she reached an appropriate conclusion, it was reported on the political blog Politics in Minnesota.

“It appears that her order arrived at the same middle ground as my administration, and essentially agreed with my list of critical services that must continue,” Dayton said in a statement.   

While Gearin’s decision was welcomed by Dayton and other DFLers, MPR News put it in context by outlining the number of active employees that various state agencies and organizations will have at 12:01 a.m. Friday if no agreement is reached.

• Department of Corrections: 3,601
• Department of Employment and Economic Development: 696
• Department of Education: 6
• Department of Health: 189
• Department of Human Services: 5,165
• Department of Labor and Industry: 32
• Department of Military Affairs: 150
• Department of Minnesota Managment and Budget: 183
• Minnesota Zoo: 150
• Department of Natural Resources: 220
• Pollution Control Agency: 13
• Department of Public Safety: 1,031
• Department of Revenue: 43
• Department of Transportation: 217
• Department of Veterans Affairs: 980

In a move that several state employees said was inappropriate, House Speaker Kurt Zellers and Senate Majority Leader Amy Koch sent an e-mail to thousands of workers regarding the budget, it was reported Monday on the Star Tribune website.

The e-mail read: "You can be sure about one thing: Our budget keeps state agencies open on July 1 and state employees will continue getting paychecks beyond June 30.”

It continued: "We agree with the Pioneer Press editorial from Sunday, June 26, that characterized Governor Dayton's negotiations as 'This is not a compromise. This is hostage taking.' Governor Dayton promised as a candidate to not shut down government, and he reiterated that pledge during his State of the State Address this year."

After state employees and a public employees union criticized the sending of the letter, both Koch and Zellers said they had done nothing wrong.

June 28

Gov. Mark Dayton and GOP lawmakers met briefly on Monday to resume budget negotiations.

Session Daily reported that the two sides spoke for about an hour and reported little progress at the conclusion of the meeting. It also said the parties tentatively scheduled a 9 a.m. meeting for Tuesday.

Dayton called the Monday talks “constructive” and “cordial” but offered little else to indicate the likelihood of a shutdown.

If no compromise is reached, state services are scheduled to begin shutting down at 12:01 a.m. on Friday, July 1.

With the July 4 holiday weekend looming, one of the most immediate, and perhaps catastrophic, effects of the shutdown will be felt by the the Minnesota Department of Natural Resources (DNR).

According to Albert Lea-based KIMT-TV, more than 60,000 overnight campers and 340,000 day users are expected to use the DNR’s 67 parks across the state this weekend. In the event of a shutdown, those people and their money — an estimated $12 million per week — will go somewhere else.

According to the DNR, unless a budget compromise is reached, the parks will begin shutting down at 4 p.m. June 30. The DNR website and Information Center services will be suspended and the administration expects to lay off most of its staff.

In anticipation of the government shutdown, Hennepin County  issued layoff notices to around 1,300 of its 7,500-person workforce.

The layoff notices — which span everything from unfinished construction projects to unfunded care at Hennepin County Medical Center — come with a 10-day waiting period before becoming effective. Hennepin County Administrator Richard P. Johnson hopes the notices can be rescinded, and the shutdown avoided, before that time.

Hennepin County is home to 1.2 million residents, employs 7,500 staff and has an annual operating budget of $1.6 billion.

Ramsey County has also begun taking steps to prepare for a potential shutdown.

In its June 14 meeting, Ramsey County commissioners directed County Manager Julie Kleinschmidt to “quantify and categorize” the impact of a state shutdown on Ramsey County.

Kleinschmidt’s full risk assessment can be found here.

Ramsey County is home to 501,000 residents, employs 4,000 staff and has an annual operating budget of $585 million.

Gov. Mark Dayton called Tuesday’s 2 p.m. budget talks with GOP leadership “constructive and productive” but also said Wednesday is the day a deal needs to get done.  

Dayton said the parties are making progress but that even if a deal is struck, there is precious little time to draft and pass any new legislation before the government shutdown happens at 12:01 a.m. on Friday.

Dayton also reconfirmed that he would not call a special legislative session unless an agreement looked imminent.  

Sen. Amy Koch (R-Buffalo) and House Speaker Kurt Zellers (R-Maple Grove) emerged from the same meeting singing a slightly more optimistic tune.

“We’re not frustrated, we feel good,” Koch told reporters after the meeting. “We’re very close on a lot of these bills.”

When pressed, Koch said the process was about 40 percent done.

Despite Dayton’s ominous tone, Koch and Zellers said that after the progress they have already made, there is plenty of time to pass and draft bills once they call to the Capitol Minnesota’s legislators.

June 27

This weekend was an eventful one in the ongoing struggle to prevent an all-out government shutdown of Minnesota state services.

Gov. Mark Dayton met with the Republican leadership extensively on Saturday and, according to Session Daily, reached consensus on a number of issue,s including state government finance, K-12 education, transportation, public safety, jobs and economic development.

But while it appears progress is being made, there is still cause for concern after Sunday talks ended just 60 minutes into discussion and both Dayton and lawmakers avoided the media, Forbes reported.

The parties are searching for common ground in their proposed state budgets, which differ by $1.8 billion. Dayton is hoping to tax the highest-earning 2 percent of Minnesotans, while the Republican leadership is staunchly opposed to any new taxation.

Elsewhere in Minnesota, the looming shutdown has left construction crews across the state working overtime to ensure road safety by finishing projects that would otherwise have been completed after July 1.

Finance & Commerce reported that MnDOT has given the green light for crews to work “longer-than-usual workdays and unscheduled weekend work to make sure road projects are (prepared) in the event of a shutdown.”

MnDOT is just one of many state departments hoping to avoid an expensive long-term shutdown.

MPR News reported that a state government shutdown could cost millions of dollars in lost productivity, delays and financial penalties. Here is a comprehensive list of costs associated with the shutdown.