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Tax reciprocity is dead for now

HUDSON--Gov. Jim Doyle held out little hope of restoring the tax reciprocity agreement between Wisconsin and Minnesota anytime soon when he visited Hudson last month.

"There really is nothing that Wisconsin can do. We want to maintain reciprocity. I think it is a good thing for our citizens. Minnesota has made the unilateral decision that they are going to eliminate it," Doyle said when asked where efforts to restore the agreement are.

Minnesota Gov. Tim Pawlenty canceled the agreement in September after Wisconsin failed to provide an accelerated payment of $72.5 million to Minnesota.

Pawlenty wanted the money to fix a shortfall in Minnesota's budget.

Doyle said he offered to make half the payment early, but Pawlenty wouldn't accept.

He said Wisconsin had already adopted its next two-year budget when Pawlenty made the demand and didn't have the spare funds to meet it.

"It's not a matter of our state or another getting more money over time," Doyle said. "This is all about this one budget. We've abided by the agreement. We've lived up to all the terms of the agreement. Minnesota now wants to get the money in this two years."

For more please read the Nov. 11 print version of the Herald.