Minn.’s Dayton takes 2nd swing at state budget

Minnesota budget, take two.

Gov. Mark Dayton planned Thursday to outline revisions to his state budget recommendations. He is reshaping his plan after improved economic news whittled a projected deficit to $627 million.

The Democratic governor has said he is scrapping plans to expand the state sales tax to services. He was counting on the new revenue to shave the underlying sales tax rate and provide property tax rebates. Those tax breaks, along with a recommended reduction on the corporate tax rate, are going away too.

But Dayton says he remains committed to a plan to increase income taxes on the top 2 percent of wage earners.

Less was known about possible changes to spending on programs that make up the two-year, nearly $38 billion budget.