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Gov. Says Latest Budget Offer Is 'Pathway' To Deal

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Gov. Says Latest Budget Offer Is 'Pathway' To Deal

ST. PAUL (AP) ― Gov. Tim Pawlenty's latest offer in end-of-session negotiations calls for a property tax cap and revives funding for a Twin Cities light rail line and northern Minnesota state park.

The back-and-forth is expected to play out for a few more rounds before top legislators and Pawlenty strike a deal on resolving a $935 million budget deficit and other outstanding items.

Pawlenty says his offer provides "a pathway to close the session."

He has floated the tax cap before, but Democrats have opposed it. They also are resisting his proposal to use a dedicated health care account as an element in the budget fix.

But the Republican governor and his legislative allies are dangling an item important to many Democrats: state money for the Central Corridor line under narrow conditions.

Pawlenty says he expects closed-door deliberations to pick up this weekend.



(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)