LANSING, Michigan - September 30, 2009 - With minutes to go before a midnight deadline state lawmakers failed to reach agreement on a budget deal, making a government shutdown likely.

A lockdown in the House, failed votes on tough issues, and political gamesmanship punctuated the negotiations at the Capitol.

In rapid-fire votes throughout the day, Promise Grants were dealt an unpopular deathblow; health care programs for the poor were slashed. But lawmakers couldn't agree on how deeply to cut school aid and revenue sharing for cities, counties and townships.

The House took no action late Wednesday night. The Senate passed the Corrections budget and voted to give a number of bills immediate effect, meaning they wouldn't have to wait until 90 days after the session ends to become law, while others failed an immediate effect vote.

Senate Republicans brought up an income tax bill with no intention of passing it in an attempt to show that Senate Democrats who voted against budget cuts also can't muster votes for a tax increase. The vote failed 33-2.

Lawmakers have been struggling to agree on nearly $1.3 billion in cuts. Federal stimulus funds or tax and revenue increases will be used to plug the rest of the hole.

The state began preparing for a partial shutdown - the second in three years. Employees were warned they might not have to come to work today and vendors were told they might not be paid until a budget is in place.