Gov. Mark Dayton is blasting legislative Republicans for refusing to pay for additional construction projects that could bring new economic development to the state.

"They are just dead wrong," Dayton said Tuesday. "The Republicans have been wrong on this since I arrived. They are short-changing projects all around the state that are job-creating projects."

Democratic and Republican legislative leaders cut a deal last year to limit new construction spending to about $850 million this session. They made the agreement before a strong economic turnout left the state with a surplus of more than $1.2 billion.

Dayton says the strengthening economy and strong budget outlook give the state more cushion to increase statewide borrowing to pay for roughly $400 million in additional projects.

Since state borrowing requires a two-thirds vote, the measure gives Republicans a rare moment of leverage as Democrats control both the House and the Senate.

Republicans say that the state should not run up taxpayer debt, and leaders have publicly not budged from the $850 million target. They say that the agreed upon number fits with historical averages and see no reason to break from it now.

Dayton says he wants more statewide construction projects.

The statewide construction measure stands as one of the last major initiatives to get completed in the final weeks of the legislative session.

Dayton said a recent Star Tribune story about an unfinished water project in southwestern Minnesota "is a prime example of where the lack of a public investment has crippled that area for economic growth."

The governor said he is willing to fully fund the water project if it would persuade some GOP legislators to support a higher borrowing measure.

"I don't think they have a toenail to stand on to justify this rigid ideology," Dayton said. Holding to that number "would deny a whole range of projects around the state because of their fiscal ideology."