LANSING, Mich. — Democratic lawmakers on Tuesday were trying to save some of the Michigan Promise college scholarship program, but a deal didn't appear imminent despite the pleas of dozens of college students who rallied at the Capitol to support the aid.

"I feel like the Promise scholarship should be very high on the list of priorities," said Ashley Hall, a Michigan State University sophomore who attended the scholarship rally sponsored by College Democrats. "How can we trust them to do anything else if we were promised this and they take it away from us?"

Legislative conference committees worked Tuesday to reach compromises on budget bills as the Oct. 1 start of the new budget year drew closer. The committees were supposed to finish their work Tuesday so the bills could go to the House and Senate for votes.

But with little agreement on how to deal with a budget gap of at least $1.2 billion that can't be filled with federal recovery act money, many committees were having to put off hope of getting their work done until Wednesday.

Community health programs, assistance for the poor, and revenue-sharing payments that local communities use for police and firefighter salaries and other programs all faced potentially deep cuts.

Democratic House Speaker Andy Dillon and Republican Senate Majority Leader Mike Bishop say they're trying to fill the gap with a mix of spending cuts and federal stimulus money. But Dillon has said the House may look at targeted tax increases to help pay for high-priority projects if lawmakers can't agree on cuts.

Dillon reiterated Tuesday that Bishop has not agreed to any revenue increases.

There doesn't appear to be much flexibility to restore the Promise grant through the state's higher education budget. Rules for accepting federal stimulus money limit the types of cuts state lawmakers can make to higher education budgets, leaving financial aid and scholarships as one of the relatively few vulnerable areas.

About 96,000 students are due a portion of the $4,000 scholarship this academic year. Republicans who control the Senate are saying the $140 million program needs to be scrapped because of the budget deficit.

Dillon said the House may identify a way to fund the program but he did not specify whether it would be through a targeted tax increase or by finding savings elsewhere.

"We'll identify ways to fund it," Dillon said Tuesday.

Asked if cuts in the Promise scholarship could be avoided, state Sen. Tony Stamas of Midland — a key Republican negotiator — said legislative leaders were still discussing the issue.

"We've got to have a balanced budget, and we're working toward that end and trying to make do with very limited resources," he said.

Stamas said funding at least a portion of the program was a priority of his, along with public safety.

Meanwhile Tuesday, lawmakers did agree on a few spending cuts in the budget.

Veterans' service organizations, which help former service members file for disability and pension benefits from the federal government, would get $1 million, or 25 percent, less than usual under a bill approved by a conference committee and sent to the full Legislature.

Interest groups continue to rail against further budget cuts. The Michigan Health & Hospital Association and the Health Care Association of Michigan began running targeted radio and newspaper ads in an attempt to stop the House from agreeing to Senate-passed cuts to reimbursement rates for health care providers who treat Medicaid patients.