Minnesota House Speaker Kurt Zellers, Sen. Maj. Leader Amy Koch and Gov. Dayton emerge from budget talks July 14 to report agreement reached. (@MNHouseInfo, TwitPic)

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ST. PAUL, Minn. (AP) - Minnesota Gov. Mark Dayton and Republican legislators say they have reached a deal to end a budget impasse that led to the longest state government shutdown in recent history.

The deal came after a three-hour negotiating session Thursday that followed major concessions by Dayton, a Democrat. It would end a two-week shutdown.

The two sides agreed on a proposal that would raise $1.4 billion in new revenue, half by delaying state aid checks to school districts and the other half by selling tobacco payment bonds.

Dayton's concession was contingent on Republicans dropping a list of policy changes plus a plan to cut the state workforce by 15 percent.

(Copyright 2011 by The Associated Press.  All Rights Reserved.)