ST. PAUL, Minn. (WCCO) — Gov. Mark Dayton says Minnesota lawmakers punished the State High School League because of Republican opposition to the league’s transgender athlete policy.

It’s an allegation Republican leaders strongly deny, and Democratic members of the Tax Conference Committee say they didn’t see.

The High School League in 2015 enacted a controversial rule allowing transgender students to compete on girls’ sports teams.

There was fierce opposition when the league enacted its transgender policy, and some lawmakers haven’t forgotten that.

But Democratic and Republican leaders involved in last minute private talks at the Capitol insist it’s not why the league lost a big tax break.

Now, the governor says some lawmakers upset about the transgender policy deliberately punished the State High School League because of it.

“And for the Legislature to say, well, we don’t like a decision that you made, thoughtfully and carefully, and so we are going to shaft kids…It’s beyond the bounds of responsible government,” Dayton said.

The State High School League was attempting to renew a sales tax exemption worth $800,000 a year that allowed it to create a charitable foundation.

Those funds are used for scholarships, athletic fees and student training.

But Democrats and Republicans on the Tax Committee say the transgender policy was never discussed before it was dropped, similar to “50 or 60” other tax items that didn’t make the final Tax Bill.

House Taxes Chairman Greg Davids says he was approached by Republican lawmakers earlier this year about the league’s new policy, but it had “zero” impact on the committee.

“I never make decisions based on things like that,” he said. “We were so busy, it was barely on our radar screen. The suggestion that we took it out because we were mad at somebody– it’s just nonsense. Somebody is making stuff up here.”

The tax bill– without the State High School League tax break– overwhelmingly passed the House and Senate.

The vote was 124-10 in the Republican-controlled House, and 55-12 in the Democratic-controlled Senate.

The State High School League declined comment on the governor’s claims.