Minnesota issued layoff notices late last week to 36,000 employees ahead of a partial government shutdown on July 1 if state leaders cannot resolve an impasse over a new two-year budget.

“It is a grim reminder of a deadline that is just 20 days away, and the reality of what a lack of compromise and agreement will mean not only for those thousands of hard-working state employees, their families and their communities, but also for the important services they provide to Minnesotans in every corner of our state,” Gov. Mark Dayton said in a statement.

The state is facing a $5 billion deficit in the next budget and the Democratic governor wants to use a combination of cuts and tax hikes to balance the books. Republicans, who control the Legislature, are opposed to any tax increases.

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