The state faces a potential $1.75 billion deficit for the budget year starting in 10 days. It's a hole dug largely by Michigan's stagnant economy, which has crippled tax revenues for state government as jobs leave the state.

Most Democrats want to raise taxes to cover well over half of the deficit. Most Republicans would rather trim government spending to make up most of the shortfall. Some worry the two sides have become so polarized that finding a compromise and avoiding a partial breakdown in state services is getting tougher by the day.

A temporary budget extension is looking more likely as the only viable option left to keep schools, prisons, public health care programs and other state services running at full steam when the new fiscal year begins. Some lawmakers say they should be kept in Lansing until the deal is done.

"It's time to get back here and lock it down ... we have no time to waste," said Rep. Chris Ward, a Republican from Brighton whose efforts to forge a deal in the Democrat-controlled House were set back early Friday by partisan bickering. Ward supported a possible deal that would raise the state's personal income tax rate from the current 3.9 percent to 4.6 percent, raising about $1.1 billion. The other part of the deal called for about $600 million in longer-term spending cuts and restructuring.

About $83 million of the additional income tax revenue was to go to Michigan's lowest-funded K-12 schools. Another $42 million would support state fish, game and wildlife programs, which could have allowed the state to avoid some hunting and fishing license fee increases. Both are priorities to some Republicans.

Another potential draw for some GOP members was tying state government cost-cutting changes to the income tax proposal. The legislation sought savings on public school employee retirement and health care, reduced pay and benefits for state lawmakers, less use of state vehicles and changes in state departments covering prisons, Medicaid and possibly welfare.

But the deal broke down amid squabbling over how many Democrats and Republicans were supposed to vote for the income tax increase.

Rep. Richard Ball of Laingsburg was one of at least two additional Republicans who appeared ready to vote for the income tax proposal in exchange for cost-cutting measures, but he didn't vote on the income tax plan because Democrats didn't put up as many votes as he expected and the measure likely wasn't going to pass without them. Then Democratic leadership cleared the voting board rather than try to push the proposal all the way through.

Democratic Gov. Jennifer Granholm has said she would veto a continuation budget unless it's tied to a revenue increase.