More budget talks but no deal

Edging ever closer to a government shutdown, state leaders met Monday for a fourth straight day of closed-door talks in an effort to solve Minnesota's budget dilemma.

While the two sides appeared cordial and upbeat, ominous signs surfaced.

Two hours before talks with DFL Gov. Mark Dayton, the entire Republican legislative leadership team scrambled to the Stillwater Lift Bridge to argue the span must remain open in the event of a shutdown, which could start Friday. They made a plea for the governor to call a special legislative session, even without a budget deal.

At the same time, attorneys for Dayton and the attorney general went to the Ramsey County District Court to ask for an order to ensure that courts continue to operate after the current state budget expires Thursday.

"I remain committed to finding a fair and balanced budget that will benefit the state of Minnesota and avoid a shutdown," Dayton said. "We'll see if that's possible."

Dayton and Republican leaders have been deadlocked since January over how to beat down a $5 billion projected deficit. Dayton has insisted on a new income tax tier for high earners, which has failed to win any Republican support. But the GOP-controlled Legislature passed budget cuts the governor said he cannot accept. Republicans remain locked on a $34 billion budget for the 2012-13 biennium, but Dayton is demanding nearly $2 billion more.

'Cone of silence'

"We've agreed to a 'cone of silence' because it is conducive to our working things out," Dayton said.

How are residents supposed to gauge progress? "When [Minnesotans] elected me, they entrusted me with the office of governor and I take that responsibility very seriously and all the legislators do, too," Dayton said.

But that came after Republicans gathered on the shores of the St. Croix River in Stillwater to ask Dayton to call a special session to pass at least the parts of the budget the two sides agree on, including transportation funding.

"This is a symbol of what's going on all across the state," said GOP House Majority Leader Matt Dean, referring to the bridge. "People are saying, 'What's going to happen?' We have an opportunity to get our work done. We are very, very close in many areas."

E-mail to state workers

"You can be sure about one thing: Our budget keeps state agencies open on July 1 and state employees will continue getting paychecks beyond June 30," it said.

It continued: "We agree with the Pioneer Press editorial ... that characterized Governor Dayton's negotiations as 'This is not a compromise. This is hostage taking.'"

State employees said the letter was political and inappropriate.

"The state's e-mail system is for legitimate public business and not to be used for political purposes," said John Evens, a state employee. "In my 10 years of state service, in three agencies, no public official has ever crossed that line the way Representative Zellers and Senator Koch did today."

Koch and Zellers said they did nothing wrong. "I thought it was important to let folks know our perspective of what we are working on," Koch said.

Going to court

In Ramsey County District Court, a lawyer for the State Board of Public Defense argued that the U.S. Constitution requires state courts to keep functioning even during a state government shutdown.

Retired Judge Bruce Christopherson held an hourlong hearing on a petition from DFL state Attorney General Lori Swanson, the defense board and Dayton to allow the courts to operate and public defenders to represent indigent clients during government closure.

The petition is opposed by GOP Senators Warren Limmer, Sean Nienow, Scott Newman and Roger Chamberlain, who accuse Dayton and Swanson of creating a "political and constitutional crisis" with their requests that a district court appoint a mediator to help settle the larger budget dispute or a "special master" who could continue essential spending indefinitely. They asked the judge to order the governor to call a special session.

On behalf of the four senators, lawyer Fritz Knaak said the Constitution requires the Legislature and Dayton to pass the funding appropriation. He called it "brazenly unconstitutional" to continue court operations without approval.

Attorney Christopher Madel, however, said it would be just a "catch" system because no one would be able to argue for the release of the accused. He was representing the Board of Public Defense.

Christopherson gave no indication of when he would rule but said, "I do understand that promptness is important, but correctness is essential."

The uncertainty of a shutdown is spreading beyond state workers. Hennepin County has begun sending layoff notices to more than 1,300 employees in the event of a cutoff of state funding, a county official said Monday.

"This is a dynamic, fluid situation," County Administrator Richard Johnson said in a news release. "[We] hope that the notices can be rescinded because the state will come to an agreement."

Staff writer Anthony Lonetree contributed to this report. Baird Helgeson • 651-222-1288