Gov. Mark Dayton and the Republicans' two top legislative leaders set a plan Wednesday -- spend all day Friday and Saturday behind closed doors trying to resolve the state's $5 billion budget deficit and avert a government shutdown.

But in keeping with the year-long muddle of uncertainty at the Capitol, by late Wednesday the marathon meeting was cast in doubt.

The bargaining mess came as lawyers for the state, DFL governor and Republicans prepared to head into a Ramsey County courtroom Thursday to argue how broad Minnesota's second state government shutdown in six years should be and whether the courts should step in at all.

Amid the swirl of legal and political maneuvering, the Minnesota Supreme Court on Wednesday dismissed a petition by four Republican senators who sought to limit essential services to those required by the state Constitution, federal mandate or statute.

With seven days left before a possible shutdown, Senate Majority Leader Amy Koch, R-Buffalo, and House Speaker Kurt Zellers, R-Maple Grove, emerged from an hourlong meeting with Dayton Wednesday afternoon to announce the marathon negotiating sessions. "Whatever it takes -- we said all day Friday, all day Saturday," Koch told reporters. Added Zellers: "It's the three of us alone in a room."

But by Wednesday night, the three had bloomed to a possible five and Koch said she wasn't sure if the meetings were still on.

She said Dayton decided to add the minority leaders of both houses to the sessions, an addition that Koch said, was "not what I agreed to" and "will not be helpful."

Dayton spokeswoman Katharine Tinucci defended the governor's decision. The governor "insists on the right to bring to the meeting the people necessary to negotiate a fair and balanced budget solution," she said.

Even before the breakdown, there was already some conflict in the meeting goals. Zellers and Koch said they planned to push Dayton for agreement on individual bills, such as transportation funding and K-12 schools. Dayton said before the meeting that he would not sign individual budget bills without an overall budget agreement. The governor also said that he would not sign the Republicans' two-year, $34 billion budget, and remains committed to raising taxes on the wealthiest Minnesotans to fund a $36 billion budget.

Dayton also largely dismissed a "lights on" proposal that would fund most state services beyond June 30, saying there was plenty of time to reach a broader agreement.

"The lives, the quality of life and the well-being of Minnesotans are fundamentally at stake in this difference," Dayton said. "I remain willing to compromise and [am] mystified why Republicans will not do the same." The governor said the Republican proposal would take 140,000 people off health care, create skyrocketing tuition costs, slash transit funding and hike property taxes.

Republicans said they too were baffled that Dayton would not begin the negotiations with small steps, and first reach agreement on budget bills that the governor and the Republicans were close to solving.

"Transportation is incredibly close," said Koch. "Ninety-nine percent of the transportation budget is dedicated funding -- has nothing to do with the [state] general fund. We really feel the place to start is where we are in agreement and close to agreement."

Zellers, who suggested the two all-day meetings, said a transportation agreement would guarantee that the state's many summer road projects would continue.

Dayton and the two top Democratic legislative leaders said Wednesday they have not tried to get lower-ranking Republican members on board for a compromise deal.

"They're going to have come forward and meet the governor on revenue," said Senate Minority Leader Tom Bakk, DFL-Cook. "If they want to come to me with $1.8 billion in revenue, we'll talk about what Democrats are willing to support in that package."

Behind the scenes

There also were signs meanwhile of several side dramas.

At a Senate Republican caucus meeting Wednesday, Sen. John Howe, R-Red Wing, briefed colleagues on a plan to expand the state's sales tax -- Republicans have vigorously opposed creating new state revenue -- but insisted the proposal would be revenue neutral. Howe said he had shared his proposal with Dayton and that it could raise $800 million.

In the Republican senators' first private caucus meeting at the State Capitol since the legislative session ended May 23, Howe said he "got a chance to explain what I was talking about. When we left there, I think everybody felt good about the conversation."

Minnesota's cities weren't feeling so good. A shutdown could leave them broke, city officials said.

"At some point, I run out of money," St. Paul Mayor Chris Coleman said at a press briefing.

In St. Paul, 28 percent of the city's general fund budget comes from state local government aid and nearly 60 percent of the city's general fund budget goes to public safety, according to the city. The mayor said the city expects to get a state aid check for $31 million on July 20.

The League of Minnesota Cities, the Coalition of Greater Minnesota Cities and the city of St. Paul banded together Wednesday in a court petition requesting that the state continue to pay local government aid during a shutdown.

But John Pollard, a Minnesota Management and Budget Office spokesman, said Dayton's proposal to define essential services does not include the employees who would send out those checks.

That leaves cities and counties bracing for the worst, as they continue to wait and see who will decide what money can be spent and what services continue.

Staff writer Eric Roper contributed to this report.

Mike Kaszuba • 651-222-1673

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