House Republicans leaders arrived mid-morning at the governor's residence to begin Friday's negotiations to settle this year's legislative season and state budget. 

Speaker Kurt Daudt, R-Crown, and Majority Leader Joyce Peppin, R-Rogers, spent about 30 minutes with Gov. Mark Dayton and senior staff before leaving. Daudt said they had left an offer. 

They are expected to return late morning. 

The two sides differ over the $17 billion education budget, and especially size and shape of a prekindergarten initiative, as well as on a range of policy issues related to regulation of energy and the environment.