ST. PAUL, MINN. (AP) _ GOV. MARK DAYTON IS WITHDRAWING HIS CALL FOR A 3 PERCENT SURTAX ON TOP INCOMES AND REDUCING PROPOSED CUTS TO NURSING HOMES IN LIGHT OF A SMALLER MINNESOTA DEFICIT.

THE DEMOCRATIC GOVERNOR ANNOUNCED THE CHANGES MONDAY AFTER STATE MANAGEMENT AND BUDGET OFFICIALS PROJECTED A $5 BILLION DEFICIT FOR THE COMING TWO-YEAR BUDGET, DOWN FROM AN EARLIER PREDICTION OF $6.2 BILLION.

DAYTON SAYS HE WANTS TO KEEP MINNESOTA FROM HAVING THE NATION’S HIGHEST TAX RATE. TWO WEEKS AGO, HE PROPOSED WHAT WOULD HAVE BEEN A 13.95 PERCENT INCOME TAX RATE FOR THOSE MAKING $500,000 AND UP.

WITHOUT THE SURTAX, HIS PROPOSAL WOULD PUT THE STATE’S TOP INCOME TAX RATE AT 10.95 PERCENT. HAWAII’S 11 PERCENT TOP RATE IS HIGHER.