The state Legislature has a lot of work to do to reach a budget deal before midnight Wednesday. The Senate passed a few budgets Tuesday that make the deep cuts they proposed in June. And the House chipped away at budgets with cuts that go deeper than many Democrats would like.

Legislative leaders say one of the biggest budget hurdles will be cuts to K-12 school funding. House Democrats want to pump more federal stimulus money into the budget. But Senate Republicans say that would create a bigger deficit in next year's budget.

Disagreements over spending for Medicaid, higher education and local government revenue sharing are expected to push negotiations close to the midnight deadline.