Topeka ? House and Senate negotiators compromised on cutting school funding but quit talking about how to balance the state budget after failing to agree Monday night on how much extra to spend to help the disabled.

“At this point, we’re at an impasse,” House Appropriations Chairman Kevin Yoder, an Overland Park Republican, said in rejecting the Senate’s last offer and leaving the table with his two budget negotiators.

Senate Ways and Means Committee Chairman Jay Emler, whose chamber controls the bill, said he has not plans to resume talks.

“I’m not calling another meeting. We’ve gone as far as we can go,” said Emler, a Lindsborg Republican. “I have nothing to come back with for them.”

Asked if negotiations were over, he said, “I don’t know, I really don’t. Anything is possible.”

The negotiators are trying to resolve their chambers’ differences on legislation to close an estimated $199 million deficit in the state budget for the fiscal year ending June 30.

The Senate bill made $335 million in adjustments, including a $7 million cut in state payments to school districts. The House approved $306 million in adjustments, including a $32 million reduction in aid for the 295 schools districts.

Both chambers endorsed $63 million in spending cuts proposed by Gov. Kathleen Sebelius. Both relied on reduced spending for less than half the proposed adjustments, with the rest to be made through accounting changes and refinancing state bonds.

The negotiators tentatively agreed to cut school funding by $27.8 million, trim $27.6 million from agencies outside of education and set up a payment schedule to local governments to offset their lost revenues due to a business machinery and equipment tax cut.

If negotiators end their talks and legislators don’t pass a bill, Sebelius will have to make the changes necessary to close the deficit. However, it’s not unusual for negotiations to break down and resume a day or two later.

At issue Monday night was how much money to add for in-home services for the physically and developmentally disabled. The House bill had $4 million for each group, while the Senate version didn’t include anything.

House negotiators lowered their offer to $2 million for the physically disabled and nothing for the developmentally disabled. The Senate countered by lowering that to $1 million, and that’s when talks halted.

Also in the mix was $2.9 million for the Wichita Center for Graduate Medical Education.

Senate negotiators said adding money for the disabled makes it more difficult to balance the budget for fiscal year 2010, which starts July 1, and raises the question of whether that funding could continue in the next budget year.

“These are very needy individuals. The concern is putting them on and taking them off,” Emler said. “How do we justify increasing the hole for next year?

House negotiators said the disabled need services which should be provided to them by the state.

“Do we continue to tell these people we’re not going to help you and tell them there’s no hope?” said Rep. Jason Watkins, a Wichita Republican and a negotiator.

Before talks stalled, it appeared negotiators were getting close to an agreement.

The governor’s budget-balancing proposal would keep state aid to public schools unchanged at $3.79 billion — half of the state general fund budget.

Deputy Education Commission Dale Dennis said some districts have reserve funds but others don’t.

“It’ll be extremely challenging, especially for some districts because of the short time left in the school year,” Dennis said.