Walz, legislative leaders fail to reach budget deal again

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

The Minneapolis Star Tribune reports 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 ½ hours, after Senate Republicans reiterated opposition to Democrat-backed tax increases. Talks are expected to resume Monday.