After a state budget forecast showed more than a $1 billion reduction in the state deficit, DFL Gov. Mark Dayton dialed back some of his most controversial budget-balancing proposals.

Dayton's revised budget outline will eliminate his proposed 3 percent temporary tax surcharge on high earners, which would have given Minnesota the highest income tax tier in the nation. Dayton will also reduce ""significantly reduce approximately $200 million in proposed cuts to the Department of Human Services for seniors' long –term care including nursing homes and home health care, Minnesota Care, and community action grants."

The newly-elected governor will also restore the funding for metro and rural transit and fire safety training and increase a research and development credit.

"I'm happy about it," Dayton said Monday in Wasthington, D.C. "It's a good way to start the week."

Star Tribune Washington, D.C., intern Jeremy Herb contributed to this report.