Gov. Mark Dayton Jackson Forderer | For MPR News 2015

Gov. Mark Dayton said Tuesday he's abandoned plans for a special legislative session to tackle jobless aid for laid-off Iron Rangers after Republicans demanded business tax cuts in exchange for their session support.

In his first public appearance since being released from the hospital Monday after fainting, Dayton struck a pugnacious tone, scolding GOP leaders for being unwilling to meet in special session to extend $29 million in unemployment benefits to out-of-work mine workers on the Range, fix state drivers licenses to meet federal ID standards and address racial economic disparities.

Dayton said his hopes for a special session ended Monday when he was told the GOP wanted him to agree to a business tax cut of $272 million as part of a session agreement.

"Republicans have just been jacking this around shamefully," Dayton told reporters. "In order to provide $29 million in extended unemployment benefits, they require a business tax cut of $272 million. ... Why does there have to be some 10-to-1 business tax cut to induce them to do the right thing?"

Republican leaders blamed Dayton and Democrats for the special session impasse.

House Speaker Kurt Daudt said the governor's staff walked out on the latest negotiation session. Daudt said the tax relief for businesses is not even controversial because Democrats have made similar proposals before.

"I actually predicted internally to my staff four weeks ago that the governor didn't want a special session. He just wanted to blame Republicans. And you know what? I think Minnesotans are tired of that tactic," said Daudt, R-Crown.

Daudt has said frequently that a special session wasn't necessary. He's promised a vote on the unemployment extension bill the first week of the regular session, which begins March 8. He's said he's also prepared to take quick action on a measure to allow state officials to begin working on the Real ID issue, by repealing the current prohibition.

Daudt said a special session could have happened if the agenda had been limited to those two issues. He said Democrats miscalculated when they also sought to use a special session to address the economic struggles of African-Americans in Minnesota.

"I think now they've figured out that they can't have a special session for the Iron Range issue and for Real ID without dealing with the racial disparity issue, because they proposed it," Daudt said.

House Republicans have insisted that a racial disparity package include tax credits for private school tuition. Dayton and Senate Democrats oppose the idea.

Dayton held out hope lawmakers could come to terms quickly on the jobless aid for Iron Rangers at the start of the regular session next month and that the GOP and Democrats could work on a plan to meet the federal Real ID demands.

The governor also reaffirmed that his fainting on Sunday was triggered by dehydration.

Asked if he planned to step down before his term ends, Dayton said, "If I'm living, breathing, I will be here til January of 2019."