Walz, Legislative Leaders Fail to Reach Budget Deal Again

ST. PAUL (AP) -- Budget negotiations between Gov. Tim Walz and state House and Senate leaders have broken off again amid an ongoing clash over taxes.

The failure to reach a deal Sunday evening leaves lawmakers just one week to bridge major divides and pass a two-year state spending plan expected to top $45 billion.

They have until May 20 to strike a deal during the regular legislative session. After that, the governor can call lawmakers back into a special session to finalize any remaining work. They must have a deal by June 30, the final day of the fiscal year, or state government will shut down.

Talks Sunday evening deteriorated within 1 1/2 hours, after Senate Republicans reiterated opposition to Democrat-backed tax increases. Talks are expected to resume Monday.