ST. PAUL, Minn. (AP) - Minnesota lawmakers are nearing a critical point as they work out how to handle a $900 million budget surplus.

The Democratic Senate was set to take up a mammoth budget bill Thursday that divvies up that sum between tax cuts, a new preschool program and other spending priorities. House Republicans were set to vote on the final part of a supplemental budget that would save up surplus money for tax cuts and transportation fixes.

Final votes on those bills were expected later Thursday.

It sets the stage for legislative leaders and Gov. Mark Dayton to begin negotiations to find a compromise. Dayton expressed exasperation this week at the House GOP's budget, calling some provisions like cuts to last year's budget non-starters.