- Associated Press - Friday, June 2, 2017

JUNEAU, Alaska (AP) - The Latest on the Alaska special session (all times local):

11:15 a.m.

Alaska Gov. Bill Walker says legislative negotiations on a budget fix are at a stalemate and he plans to step in.

In a statement Friday, Walker says his administration has begun work on what he calls a compromise package that he plans to share with lawmakers next week.

Walker spokesman Jonathon Taylor said he did not know what the final package might look like.

Walker says there’s no reason that lawmakers cannot finish their work within the current special session, which is scheduled to end in two weeks.

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10:55 a.m.

With a special legislative session halfway over, little progress has been made by Alaska legislators toward passing a state budget and addressing a multibillion-dollar state deficit.

On Thursday, notices were mailed to thousands of state employees warning of potential layoffs if a budget is not finalized by July 1, the start of the new fiscal year.

Legislative leaders have said they do not want a government shutdown, but they also remain entrenched in positions staked out months ago for how best to address the deficit.

While there’s general agreement that earnings from Alaska’s oil-wealth fund should be used to help fund government, the Republican-led Senate and House majority coalition disagree over what else is needed for a fiscal plan.

The House coalition is composed largely of Democrats.

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