ST. PAUL — Legislative caucus leaders reached a budget agreement and will hold a special session starting at 10 a.m. Monday.

“This bipartisan budget agreement makes thoughtful reductions in state spending while keeping us on track to make Minnesota the best state in the country to raise a child,” said Gov. Tim Walz on Friday.

Walz acknowledged each side needed to make concessions to reach a compromise.

“With this budget, legislators and the governor are showing Minnesotans that we can work through complex, difficult issues, find common ground and act in the best interests of the state,” said Senate Majority Leader Erin Murphy.

“Despite the 23-day delay to the start of the session, Minnesotans expect legislators to get their work done,” said House Speaker Lisa Demuth. “I look forward to finishing the state budget with the largest cut to state spending in history, important reforms to Earned Sick and Safe Time and Paid Family Leave, and other important wins for Minnesotans across the state.”

Rep. Paul Torkelson, R-Hanksa, said with the agreement reached between the four legislative leaders and Gov. Walz, the state was looking at a $66 billion budget over the next biennium, which was $4 billion less than the budget for the last biennium.

Torkelson said the most controversial part of the budget negotiation was the health insurance for undocumented citizens, but Torkelson said the two sides were able to reach an agreement.

“The final agreement will end coverage for adults, but keeps children on through their 18th birthday,” Torkelson said.

Torkelson said the budget will include $700 million in bonding. The bulk of the bonding was for transportation and water infrastructure.

“It looks like a reasonable approach for bonding,” Torkelson said.

He said there were no specific transportation or water infrastructure projects listed in the bill. The plan is to fund the prioritized projects first. Torkelson believed New Ulm’s lift station project could receive funding. If the lift station does not cut this year, he promised to push for it next session.

Torkelson said the need for a special session was a strong possibility from the start of the legislative session.

“We came into this session with a tie in the House and a one-vote difference in the Senate so this was expected,” he said.

Torkelson expects the special session to last a single day, preventing a state shutdown at the end of the month. Another round of layoff notices are expected to be sent, but if the budget is passed on Monday it will only be a notice.

“If we get everything signed sealed and delivered, there will not be any layoffs for state employees,” Torkelson said.