Gov. Mark Dayton and Republican legislative leaders are meeting for private budget talks after more than a week of public posturing.
The regular legislative session ended last week without a budget deal, pushing the state toward a sweeping government shutdown if the dispute isn't resolved by the end of this month.
Friday's talks are the first time the two sides have met since May 22.
They are hung up on how to erase a $5 billion deficit.
The Democratic governor wants to raise $1.8 billion in new taxes, which Republicans oppose.
If there is no state budget in place by June 30, Minnesota would have its second shutdown in six years. But the 2005 shutdown only affected parts of state government, while this one would reach across the board.
(Copyright 2011 by The Associated Press. All Rights Reserved.)