No deal but more talks planned with hopes of averting shutdown

Governor Dayton and legislative leaders intend to hold another budget meeting tomorrow morning as the clock ticks closer to a Friday deadline. The two sides met privately today but still didn't reach a deal on a two-year budget. Gov. Dayton and GOP lawmakers declined to discuss what they talked about in the private meetings, but Dayton said they need to reach a deal soon if they hope to avert a government shutdown.

"We have two days until July 1," Dayton said. "That's the timeline. So obviously the Legislature would have to act to avert a shutdown so the time is down to hours."

Republican Senate Majority Leader Amy Koch says she's telling lawmakers to be ready to return quickly to the Capitol in case a budget deal is reached.

"We're optimistic," Koch said. "We put those gears in motion, if you will. We fired up the Legislature this week and so they're standing at the ready."

Dayton and Republicans in the Legislature are at odds over the best way to erase a $5 billion projected budget deficit. Dayton wants to raise income taxes on Minnesota's top earners to help balance the budget. Republicans say the deficit can be erased through spending cuts.

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