One state employee who asked not to be named said his union was instructing him to show up to work Monday and file a grievance if he was sent home because the state has not given the customary 30-day layoff notice.

Just 17,000 state employees would remain on the job, according to the notice. Among those who would continue to work would be 12,000 corrections officers and 200, or one-fifth, of the 1,000 Michigan State Police troopers. State psychiatric hospitals would continue to be staffed.

“Due to an unanticipated loss of funding as a result of the state’s current budget crisis, I am notifying you that you are being placed on a temporary layoff” beginning at 12:01 a.m. Monday, employees were told in letters sent from their department directors.

“Do not report to work beginning on Monday, October 1, 2007, unless otherwise notified.”

It added that negotiations continued on a deal that would avoid a government shutdown Monday and told employees that “if and when an agreement is reached, you will be expected to report at your next scheduled shift.”

The House and Senate have been in session since 1 p.m. today, although there has been very little action on the floor.

The state is facing a budget shortfall of $1.75 billion for the fiscal year starting Monday. Tax increases, budget cuts and state government reforms have all been part of the budget-balancing talks.

In other fast-breaking developments today:

*The state Civil Service Commission this morning deadlocked 2-2 on an order that would have allowed the state to lay off workers without the 30-day notice required by contract.

But Liz Boyd, Gov. Jennifer Granholm’s spokeswoman, said the furloughs would happen Monday anyway.

“Regardless of the decision, if the Legislature fails to act and government must partially shut down, the state will be forced to make layoffs due to a lack of appropriations as required by the constitution,” she said.

Because there’s a two-week lag in payroll, the first employee paychecks affected would be Oct. 18.

*Michigan State Police Command Officers’ Association, which represents those holding the rank of lieutenant or higher, said its membership voted to remain on the job — without pay — if a partial closure of government is ordered.

“Our mission and purpose is simple,” said Diane Garrison, the group’s executive director. “We are here to serve and protect the citizens of Michigan.”

*Granholm and the Legislature agreed today to a “news blackout” on their ongoing negotiations. A blackout prevents those involved in the talks from making public comments for fear of derailing progress. The leaders continue to meet behind closed doors.

Asked if there was a “gag order,” Lt. Gov. John Cherry said, “If that’s what you want to call it, yes.”

However, Cherry added: “I’m very optimistic. I feel like things are on a very positive direction right now.”

*The state Republican and Democratic parties put up dueling radio ads today each blaming the other for the budget impasse.

*Dick Blouse, president and CEO of the Detroit Regional Chamber of Commerce, which represents more than 23,000 businesses, said his group is adamantly opposed to imposing a sales tax on services. That option has been on and off the bargaining table throughout negotiations.

“We’ll opposed to the bloody end any effort to put a sales tax on services of any type,” said Blouse. “It gets concerning to me when the deal-making starts at this late hour that they will find the easy way out and raise taxes instead of the harder way which is cutting the size of government.”

He said his group would support a temporary increase in the income tax which would later be undone by a simple majority of the Legislature.

Lawmakers have been discussing an income tax hike from the current 3.9 percent to as high as 4.6 percent.