LANSING (AP) - State government was preparing for a possible partial shutdown that could start next week even as negotiations to avoid a stoppage continued yesterday at the Capitol.

Democratic Gov. Jennifer Granholm said state parks and welcome centers could be closed and Detroit casinos and liquor sales could take a hit if she has to shut down the government on Monday because a projected $1.75 billion shortfall hasn't been resolved.

But essential services that protect health and safety - which could mean prisons and police patrols, although Granholm did not specify - would keep running.

Tomorrow is shaping up as a crucial day in the negotiations between Granholm, Republicans who run the Senate and Democrats who make up the House majority.

Some lawmakers say it's the deadline to adopt a temporary budget extension so some state payments aren't missed early next week. Others say they might have until Sunday to craft a temporary deal. A continuation budget hasn't been passed in Michigan since 1980, so there's no clear roadmap on how to do it.

The Senate already has passed a 30-day temporary budget extension. But the House hasn't acted on the proposal because Democrats want assurances higher taxes will be part of the deal.

"In the event the Legislature forces us into a partial government shutdown, it is our intention to continue the most vital services until a budget resolution is reached," Granholm said in a statement.

A spokesman for Senate Majority Leader Mike Bishop (R-Rochester) said the governor could avoid a shutdown by supporting the Senate's temporary budget extension.

"Citizens must understand, a shutdown of government will have drastic consequences and there will be nothing partial about it," Matt Marsden said. "Nobody is authorized to appropriate or spend state money if a budget has not been passed."

Added the House's top Republican, Novi Rep. Craig DeRoche: "The only thing worse for Michigan's economy than a tax increase would be a government shutdown. . It's irresponsible."