Minn. governor and lawmakers narrow gap on budget deal
by The Associated Press
 
ST. PAUL -- It's a make-or-break-a-deal day at the Capitol, with a solution for Minnesota's projected $935 million budget deficit still out of reach.

Talks are expected to continue throughout the day as deadline pressure builds. Lawmakers have until midnight Sunday to pass bills or attempt veto overrides.

Republican Governor Pawlenty and leaders of the DFL-controlled Legislature talked through the night yesterday before quitting in the small hours this morning.

Assistant Senate Majority Leader Tarryl Clark says the two sides have narrowed their differences to less than $200 million worth of items.

She says they've agreed on more than $300 million in spending cuts and on a plan to drain $500 million from the state's reserves.

Other sticking points include the amount of a cap on rising local property taxes and the size of an increase in local government aid to offset such a cap.