Budget Deal Remains Out of Reach as Potential Layoffs Loom

ST. PAUL, Minn. (AP) - Gov. Mark Dayton and House Republicans are chipping away at a special session deal but haven't found a final agreement yet.

The Democratic governor and House Speaker Kurt Daudt met Thursday for a third day of private negotiations over three incomplete pieces of the state's budget. They need to strike a deal and finalize the budget before July 1 to avoid another partial government shutdown and more than 9,400 employee layoffs.

Agriculture, environment, jobs and economic development are all on the table due to the governor's veto of those budget bills. But the main dispute is over public school funding.

Dayton wants a statewide preschool program and more funding for schools. Daudt says he's open to increasing school appropriations but says that money should go to the per-pupil funding formula.