MINNEAPOLIS, Minnesota (PNN) - July 1, 2011 - Minnesota's state government began a broad shut down on Friday going into the Independence Day holiday after Democrat Governor Mark Dayton and Republican legislative leaders failed to reach a budget deal.

Parts of the government had already begun to shut down on Thursday ahead of the midnight budget deadline, including some websites and dozens of highway rest stops on one of the biggest travel days of the year.

The budget impasse means that some 23,000 of the roughly 36,000 Minnesota state employees will be furloughed and state parks and campgrounds closed ahead of what is usually their busiest stretch of the year for the Independence Day holiday.

Dayton and Democrat legislative leaders Senator Tom Bakk and Representative Paul Thissen met for more than a week with Republican leaders, including House Speaker Kurt Zellers and Senate Majority Leader Amy Koch. The political leaders met several times on Thursday in the governor's office.

Neither Dayton nor Republican political representatives gave any indication when they would meet next to discuss the budget.

"I deeply regret that the last week of intense negotiations between Republican legislative leaders and Senator Bakk, Representative Thissen and myself have failed to bridge the divide between us," Dayton said in a speech.

He said his last proposed two-year general fund budget was $35.7 billion, but the differences between his approach and the Republicans had not changed since January. The gap between the two sides stood at $1.4 billion, he said.