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Minnesota Governor Mark Dayton stands on the North Lawn of the White House in Washington, D.C. - 

Jeremy Hobson: Well the nation's capital isn't the only place in the midst of budget talks right now. State capitals are too. A judge in Minnesota will decide this week what services should continue if the state's government shuts down on Friday.

Marketplace's Jeff Horwich reports.

Jeff Horwich: Wherever you live, this ought to sound familiar: Minnesota's Democratic Governor Mark Dayton wants spending cuts and tax hikes to erase a $5 billion deficit. The Republican-controlled legislature won't entertain any new taxes.

Larry Jacobs is a political scientist at the University of Minnesota.

Larry Jacobs: We're now at the spot where Democrats and Republicans would rather face the shutdown, and think actually it makes sense, than to make more compromises in their fundamental philosophical beliefs.

Other states still need a budget deal before the new fiscal year on Friday.

Todd Haggerty of the National Conference of State Legislatures says most have some sort of pressure valve -- either a constitutional provision or court rulings that permit temporary extensions.

Todd Haggerty: So then when you look at the case of Minnesota, they don't have either one of those options. So that's when you do face the government shutdown.

A shutdown could affect services from state parks to support for the disabled. Budget adversaries in Washington will surely be watching for who blinks first.

I'm Jeff Horwich for Marketplace.

Follow Jeff Horwich at @jeffhorwich