Governor Discusses Transportation Funding, Day Care Tax Credit

ST. PAUL, Minn. (AP) — Cheap gas prices could put a dent in Gov. Mark Dayton's forthcoming proposal to tack a new sales tax on fuel purchases.

Dayton acknowledged Friday that his bid for billions more for road-and-bridge work would fall short if today's surprisingly low gas prices stay that way. He has said he'll push a $5.8 billion revenue plan for the next decade, with a portion coming from a 6.5 percent tax on gas purchases.

Dayton says the revenue estimate is based partly on gas prices averaging $3.25 per gallon — substantially more than the $2 many motorists are paying now. As gas prices rise, so would the state's tax take, which is legally dedicated to road construction.

Driving habits change based on fuel prices, so crafting firm tax estimates will be difficult regardless.

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ST. PAUL, Minn. (AP) — Gov. Mark Dayton says he'll suggest devoting about one-fifth of Minnesota's projected $1 billion surplus to an expanded child-care tax credit.

Dayton will submit a two-year budget to lawmakers later this month but so far has said little about its contents. He told reporters Friday that he'll propose a $180 million tax break in the form of the care credit.

If structured similar to one pitched last year, his plan would provide credits for day care expenses to thousands more households. A Dayton spokesman said details about the plan would come out with the full budget.

Currently, about 36,000 families below a certain income level receive the credit.

Depending on a family's number of children in day care, the credit can mean hundreds or thousands of dollars in annual savings.