Minnesota legislators reach budget agreement

ST. PAUL, MN UPDATE: Minnesota Gov. Tim Walz and top legislative leaders have reached a bipartisan budget agreement that drops the governor's proposed gasoline tax increase but gives middle-class Minnesotans an income tax cut and preserves most of an expiring tax that funds health care.

The Democratic governor, Republican Senate Majority Leader Paul Gazelka and Democratic House Speaker Melissa Hortman announced details Sunday, with just over 24 hours before Monday night's adjournment deadline. The leaders expect to call a one-day special session for Thursday to finish the work.

The deal also includes more money for education.

Walz said the negotiations were difficult and neither side got everything it wanted, but that it showed they were able to make divided government work.

Gazelka said the talks ended in a draw that will be good for Minnesota.

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