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Republican leaders in the Minnesota Legislature say they've offered a compromise budget plan to Democratic Gov. Mark Dayton, but there's still no agreement to head off a possible state government shutdown.

Republicans say they're willing to spend more money on K12 schools, public safety and the courts.  But they don't want to increase the size of their overall budget.  That means Republicans would be forced to make cuts in other areas.  Republican House Speaker Kurt Zellers says he hopes their proposal will help end the budget impasse.

"This is what we would consider a major compromise," Zellers said.  "A significant move for us when it comes to nearly 50 percent of the budget now being agreed to by us, by our membership."

Governor Dayton says he's slightly more optimistic that a budget deal can be reached but says Republicans still need to come up with more revenue, like tax increases, to meet his demands.

"It's going to be a question of whether they're really willing to reach out on the revenue side as well as on the spending side," Dayton said.  "If they are, then I'm willing to reach out on the spending reduction side but I really need to see evidence in a midpoint number that they are willing to commit to or agree to."

The two sides have until July first to reach a budget deal or state government will shutdown.

You can read the GOP letter to Dayton here:

GOP leaders take questions from reporters:

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Tom Scheck

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