(St. Paul, MN)  --  The state's budget shortfall has dropped 463 million dollars in the latest forecast released today -- and Republicans say it demonstrates that Governor Dayton's proposed tax increases are not needed.  Dayton defends his plan, asking how the state can refuse to make additional investments in education and still expect better results.  "I don't think that's realistic," says the governor.  House Republican Minority Leader Kurt Daudt (DOWT) responds increased sales taxes on middle-class families will devastate Minnesota's economy and taxing job creators won't make the state more competitive.  Daudt says the governor needs to come up with a new budget.