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Update posted 11:12 a.m.

(KNSI) – After saying a budget deal has been reached, legislative leaders at the Capitol now say there is no deal, but rather they’ve “reached an agreement on target numbers” with Governor Tim Walz.

In a statement, Governor Walz says, “This bipartisan budget confronts the challenges we face today while investing in the future to help Minnesotans emerge from this crisis stronger than before. Not every Minnesotan was hit by COVID-19 equally – many families and small businesses have struggled tremendously over the past year. That is why it’s so important that we make it easier for families to get by, ensure our students catch up on learning loss, and provide support to our small businesses.”

“I’m proud that the agreement we reached makes historic investments in education while providing tax cuts for Minnesotans across the state. This demonstrates that, despite a divided legislature, Minnesotans are united by our shared values: We look out for our neighbors, we want everyone to have an opportunity to succeed, and we all do better when we all do better.”

GOP Senate Majority Leader Paul Gazelka says “sooner or later we had to come to a place with what we had to set for targets. It’s never easy in divided government.”

The GOP had asked for no new taxes, which they got. Democratic House Speaker Melissa Hortman says they asked for and got a “historic investment” in K-12 education.

A special session will need to be called to pass any bills.

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Original story posted 9:36 a.m.

(KNSI) – Minnesota Governor Tim Walz says the House and Senate have struck a budget deal.

An official announcement is expected at 11:00 Monday morning with the governor, House Speaker Melissa Hortman and Senate Majority Leader Paul Gazelka.

The constitutionally-mandated adjournment day is May 17th. If a deal was not reached by midnight, the legislature would have had to go into a special session.

If the funding package is not passed by June 30th, a government shutdown would begin July 1st.

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