Having vetoed the Legislature's budget bills, Gov. Mark Dayton Tuesday said lawmakers are "held captive" to the "extreme right wing" and it seems government shutdown is a "strong likelihood."

His administration has begun planning for state government to shutdown in July 1. State employee lay off notices may start going out as soon as next week.

Dayton's Minnesota Management and Budget Commissioner Jim Schowalter said a shutdown is "dealing with chaos" and Tuesday had as many questions to explore as answers.

"Despite my expertise, I don't know what's going to happen," said Schowalter, who has spent his entire career in state government finance jobs. "Nobody knows the answers today or tomorrow."

State government partially shutdown in 2005 but Schowalter said if it happened this time the impact could be "much, much more extensive."

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