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Racino plan influences Minnesota budget talks

ST. PAUL - A growing split over opening a racino flavored Thursday's budget talks at the Minnesota Capitol. The division partially caused a blow-up in a House-Senate tax committee. It influenced a co-chairman of that committee to step aside. And ...

ST. PAUL - A growing split over opening a racino flavored Thursday's budget talks at the Minnesota Capitol.

The division partially caused a blow-up in a House-Senate tax committee. It influenced a co-chairman of that committee to step aside. And it was so deep that House leaders decided to skip a vote on the issue.

Despite the problems, Republicans led by Gov. Tim Pawlenty continued to demand that $200 million from a casino at Canterbury Park horse track be part of the solution to finishing a two-year, $30 billion budget.

Closed-door negotiations among the four top legislative leaders and Pawlenty were called positive, but an overall budget deal remained elusive.

Negotiators basically agree on how to fund education, and through the day looked at a new idea from the Pawlenty administration to retain all current clients on MinnesotaCare and other state-funded health-care programs - without raising taxes or fees. Details of the proposal were not made public.

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The activity came on the seventh day of a partial government shutdown, in which nearly 8,900 of 48,000 state employees were idled and some state services are suspended.

Post-July 4 fireworks highlighted the House-Senate tax committee. Co-chairman Sen. Larry Pogemiller, DFL-Minneapolis, complained that Republicans continue to push the Canterbury casino, known as a racino, even though they know Democrats never will accept it.

"It was just a shouting match and a show for him," Rep. Dean Simpson, R-New York Mills, said.

The mid-day meeting ended with Pogemiller and Rep. Morrie Lanning, R-Moorhead, exchanging words, those in the meeting said. Pogemiller blasted the racino and Lanning complained that Senate Democrats kept promoting tax increases they know Republicans won't support.

"Welcome to the big leagues," Pogemiller said in ending a lengthy speech to Lanning.

"I'm very upset with Larry Pogemiller's performance today," Lanning said later.

Republican House members did not attend a night committee meeting.

In the meantime, the other co-chairman of the committee quit. Rep. Phil Krinkie, R-Lino Lakes, said he cannot support Republican leaders' racino plans or increasing a cigarette fee 75 cents a pack.

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Krinkie and Pogemiller, at the opposite ends of the political spectrum, had failed to reach an agreement on revenue increases. With that, House Speaker Steve Sviggum, R-Kenyon, said legislative leaders yanked power they earlier had given the committee and planned to start making tax and fee decisions themselves.

Sviggum said he skipped a planned full House vote on a racino because it did not have the votes to pass.

Readers can reach Forum reporter Don Davis at (651) 290-0707

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