The two sides have been meeting all week, trading offers to resolve a $1 billion budget gap and disputes about how much to offer in tax breaks. They have a $1.65 billion surplus to use but just five days to finalize a deal.
But both sides say the latest rounds of negotiations took a step backward. Talks were on hold Thursday morning as the governor and legislative leaders dug in to their respective positions.
Dayton wants more money for government services. Republicans are aiming to use that money for road repairs and tax breaks.
The session ends May 22. State government will shut down unless lawmakers pass a new budget by July.