After a bitter few days, Gov. Tim Pawlenty met with DFL legislators on Wednesday to begin working out their differences on the General Assistance Medical Care (GAMC) legislation he vetoed and a $1 billion bonding bill he has threatened with the same fate.

The most encouraging words after the meeting came over the bonding bill, including a pledge to meet again Thursday morning.

"We have one very clear agreement," said Rep. Alice Hausman, DFL-St. Paul, chairwoman of the House capital investment division. "Everybody wants a firm deal for a bill that will be signed."

On Monday night, the DFL-controlled Legislature approved the bonding bill that the governor promised to veto, calling it too expensive and out of sync with the state's priorities. In a rare move, lawmakers didn't forward the bill to Pawlenty to allow a couple of days to resolve differences.

With signs of progress, the Senate is expected to reconsider the bill Thursday so that lawmakers have time to retool a proposal that meets the governor's approval. Democrats said they hope to complete the borrowing package next week.

Despite apparent progress on GAMC, the Senate still planned to try to override the governor's veto Thursday. The House could do the same as early as Monday.

Democrats said they were encouraged by the meeting with the governor and top commissioners.

Legislators overwhelmingly passed a $283 million bill last Thursday to extend GAMC for 16 months, but Pawlenty vetoed it, saying it was too expensive as the state faces a $1.2 billion deficit. Lawmakers are under a tight deadline because money for the program, which serves 32,000 low-income adults each month, runs out April 1.

"Any solution relative to GAMC has to work in the context of a comprehensive, balanced budget," said Brian McClung, the governor's deputy chief of staff. It was a "productive meeting, and we are going to work through and continue to talk."

In the meantime, the Department of Human Services is preparing to have eligible people make a transition from GAMC to another program, MinnesotaCare.

Baird Helgeson • 651-222-1288