Gov. Mark Dayton and legislative leaders are reviving talks for a special legislative session.

Dayton and legislative leaders will meet Friday in St. Paul and try to reach agreement on tax cuts and millions of dollars in transportation and construction spending.

At stake is a menu of tax cuts for residents around the state, a new science building for the University of Minnesota and funding for a new light-rail line from downtown Minneapolis to Eden Prairie.

The DFL governor vetoed the tax package in May because of an error that he said would have cost the state $100 million.

That prompted immediate calls for a special session to fix the mistake and pass a measure for new construction and transportation spending, which failed in the chaotic closing minutes of the regular legislative session this spring.

Dayton and House Republicans have deadlocked over how much to spend during the special session. The governor has been insisting on money for the U building and light-rail funding, which Republicans ignored at the end of the regular session.

Senate Majority Leader Tom Bakk said Wednesday during a groundbreaking ceremony at Falls International Airport that there is a basic agreement on the parameters of a special session, according to WDIO-TV in Duluth.

"I think in principle the governor and the speaker and I have an agreement about what a special session looks like," said Bakk, DFL-Cook.

Staff for the governor's office and House Speaker Kurt Daudt, R-Crown, did not confirm any agreement but said all sides will meet again Friday.

Previous meetings have resulted in little, if any, progress.

House DFLers made a counter offer for a special session Thursday, calling for more spending on state construction projects, road and bridge repair and new money for the state Security Hospital in St. Peter.

They are also asking for pension changes and a fresh look at ways to enhance trust between police and the communities they serve.

Bakk said a special session would not happen until after the upcoming national political conventions and the Aug. 9 primary.

Baird Helgeson • 612-673-7193