ST. PAUL, Minn. - Gov. Mark Dayton and the Legislature's top Democrats have reached a budget deal that includes income tax increases on wealthier Minnesotans and a cigarette tax increase, and aims to provide property tax relief while boosting spending for public schools, state colleges and other programs.
Dayton and DFL leaders held a rare Sunday news conference to announce a deal though a number of details remain to be worked out.
The deal calls for raising about $2 billion in new tax revenue in the next two years. That's offset by about $400 million in state aid to cities and counties meant to relieve pressure on property taxes.
The deal also calls for fully repaying back debts to schools from delayed aid payments over the next two years.
DFL leaders say alcohol and gas tax increases are still possible, and that pay raises for legislators are still on the table too.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)