Budget negotiations between Gov. Tim Pawlenty and legislative leaders ended shortly after midnight, with both sides indicating that some progress had been made toward resolving their differences -- although clearly not enough.
About $355 million in spending reductions had been agreed on, said Assistant Senate Majority Leader Tarryl Clark, DFL-St. Cloud. Pawlenty spokesman Brian McClung said that the governor was looking for a "holistic" agreement that included a balanced budget, property tax relief and reduction of next year's expected deficit.
But with Monday's adjournment deadline looming ever closer, there were no breakthroughs Thursday.
"We're stuck in a rut here," said House Speaker Margaret Anderson Kelliher, DFL-Minneapolis, who nevertheless said she saw "a lot of options" for finishing the session.
Talks are expected to resume later this morning after Pawlenty returns from "Capital for a Day" ceremonies in in Winona.
The two major areas of discussion Thursday appeared to be property tax relief and health-care reform, and Clark said that that one probably wouldn't be accomplished without the other.
"We are so close. It's just time to get the job done," she said.
Hanging over all was the need to close a projected $936 million budget gap.
There were some signs of frustration Thursday. Just before a late dinner, Kelliher left the room after an exchange over funding for property tax relief, said House Minority Leader Marty Seifert, R-Marshall.
Republicans want a cap on property tax increases no greater than 3.9 percent, while DFLers want to increase the amount of local government aid that the state provides to communities. But where to find the money?